I posted GBPJPY short trade setup yesterday, based on the Divergence on the Daily Stochastic.    The price dropped approx 100 pips yesterday, though it didn’t go down as low as 193.17, which I mentioned on the post.

I hope some of you earned some pips out of GBPJPY yesterday.

Reading the Daily Chart today, I still see the Divergence on the Daily, and cannot stop considering another short trade.

2015-08-14_12-55-03-GJ1

I suppose the price should drop down to 55EMA (192.50 ish) or even down to MPP (191.00 ish).  But that will take a week of more.

Yesterday I showed H4 chart.  But today I would like to show Hourly chart (below).

2015-08-14_12-58-04-GJ2

The chart is forming a Pennant, and getting close to the apex.   Based on the bearish divergence on the Daily, I have to assume the price will eventually drop from the pennant.

For the entry, you can use the above Hourly chart to wait until the break of the Pennant, and try to sell from the next lower high.

Another entry could be, to use M15 chart (below), and play the breakout strategy.   Wait for the break of the current support (194.15), and when it breaks, wait for the pullback and SELL.

 

2015-08-14_13-01-03-GJ4

This could be another nice London open trade.

If you are day trading, then the target should be DS2 (193.13.   DPP -> DS2)

If you are swing trading, the target should be WS1 (191.12.  WR1->WS1)

 

Again, the market is thin.  So stay small, stay humble… and Happy Tradin’

 

 

YJ Baik – Forex.Today @ Tokyo

 

 

 

 

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