Today Shanghai Index is flat, Nikkei is down. Australia is down. And USDJPY is down. (as of 2AM EST)
Smells like another Risk off day?
My bias is short-term short, long-term long, and hoping I could start building up Long opportunity.
However, I still think GBPJPY will go down today.
Several reasons for that.
Daily chart below shows Stochastic just crossed down. I have to believe the price may drop a bit further. (I said the same thing yesterday… 🙂
Hourly chart (below) looks like perfect setup for Short now, from DPP and Role-Reversal area. (If the price drops from here, I am sorry. My posting was late, right? I will try to post my setups a bit earlier).
Well, looking at M15 chart, I think it is more interesting to short from a bit higher.
Fibonacci on this chart is from Yesterday’s High down to Yesterday’s Low.
There is a pivot cluster of WPP & MPP around Fib61.8% area. It will be great if the price comes up to this level.
Of course, it makes perfect sense to short from Fib 38.2% and 50% as well.
But what if the price doesn’t come up to this level, and just keep dropping from the current price?
Well, you can always play the Breakout strategy from the previous low. (181.90).
However, please be careful. The downside may be limited to 181.00.
Why? There is a supporting Clouds at 181.00 on the Weekly Ichimoku.
So don’t be too greedy today.
YJ Baik – Forex.Today @ Tokyo