Dear traders,

 

Here is another start of the week.

Nikkei started Bearish, but with the help of China GDP, it went up a bit, resulting moving sideways so far. (1:10 AM EST.)   Shanghai index is also flat…

Now, GBPJPY…

Looking at H4 chart below, I would still like to sell this pair.  Currently it is at Fib 50%.   It may go down as low as Previous low at 181.90. (Oct 13 low)

2015-10-19_13-58-41-GJ2

Also please note that the price is facing the resistance (Kijun line) on Daily Ichimoku. (below)

2015-10-19_13-47-44-GJ-1

 

But the strongest reason to sell this pair is Divergence on Hourly stochastic as seen below.  (You should remember I am a huge fan of Divergence)

2015-10-19_14-01-25-GJ3

 

For the entry, I would like to suggest to wait until the break of the previous low (183.66 – also WPP) on M15 chart.

But hey, waiting for the break of 183.66?   That’s 100 pips down!!    If you think so, then you are aggressive!! 🙂

2015-10-19_14-04-58-GJ4

For those aggressive traders, we could also play the breakout strategy at the immediate low on M15. (as shown below)

2015-10-19_14-04-58-GJ4-GJ5

You want to play the breakout at DPP? or 184.000 ?   Well, that’s your alpha.

The key is… just to identify the entry point which you feel comfortable with.    The entry could be 5/8 EMA cross on Hourly chart, or anything…

 

1st target should be DM1. (183.14   DM3 -> DM1).

Aggressive target will be 181.86 (Prev Low on H4).

 

 

Hope this setup helps you a bit.

 

YJ Baik – Forex.Today @ Tokyo

 

 

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