GBPJPY has been up during Asian hours today, and now on H4 chart, the price is up to 55EMA level while Stochastic is now reaching up to 75% and about to turn down?
Thus I am looking for Short trade of GBPJPY.
Looking at M15 chart now. (Below) The price has reached to the importance level of 183.100 (High on Sep 30), and from there the price dropped and made Lower Low.
Aggressively, we could short from the next Lower High. Or… more conservatively, we could short from 2nd Lower High.
In order to make this happen, we need the help from USDJPY, which is touching the top of the range. So if, in fact, the price falls from the current top (120.30), it should be interesting.
The target for this Short trade will be 181.00. Since the price dropped down from 55EMA on H4 chart, I am expecting either Higher Low, or Double bottom (180.50).
So probably better off to exit the trade just above that, which is 181.00.
I hope this setup will help you build your own.
YJ Baik – Forex.Today @ Tokyo