GBPJPY has been dropping without major pullbacks during Asian hours.

Typically, in this type of market, you can simply follow the trend by

a) Make sure 21EMA < 55EMA
b) 5/8 cross down = Sell, 5/8 cross up = exit

 

But the question is … how long can we play this way?

Looking at Weekly Ichimoku, the candle is dropping and about to touch the top of the cloud, which functions as Support & Resistance.  Thus it is safe to say 180.50 is a hardcore resistance.

2015-09-29_14-55-19-GJ1

 

Interesting thing is … H4 also shows 180.50 is a support.

2015-09-29_14-57-09-GJ2

So I am not saying the price will bounce up from 180.50.  I am simply saying this is a hardcore support.   So get ready for

a) Bounce up
In this case, you want to Long from the pullback.  Target will be … well, I suggest you Swing Long, and see how high it will go!  🙂
b) Break the support
In this case, you want to Short from the retest of 180.50.   But again, I don’t think you can expect many pips as the Weekly Clouds will support this pair.  So just try to get small pips (50-100!  This is a big pips for regular paris, but not for the Beast!) and run.

 

I would like to try to trade this pair today.

 

Hope this analysis helps you build your own trade setup.

 

YJ Baik – Forex.Today @ Tokyo

 

 

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