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