GBPJPY has continued to go down.
I still think Yen stays strong for a while. So I would like to consider Short trade setup.
Below is H4 chart, and 21/55 EMAs are looking down, while 5/8 as well as Stochastic are looking up. So the price may go up for a while, but since the price is still under 21EMA, I will only consider to short.
Suggested Sell zones are
a) 21EMA & Fib38.2 zone (183.60-70)
b) Next Resistance (184.85 zone)
Please make sure Stochastic is crossing down, before selling. (Stochastic may not go as high as 75% as this is still trending down)
The conservative target should be Double Bottom (181.70 ish), though Fibonacci theory suggest the price should go further down.
The aggressive target, on the other hand, should be 179.50 (Fib138.2%).
Also … here is the contingency plan, in case the price doesn’t go up and start tanking right away.
On M15 chat, look for the break of the previous low (182.65), and if the price breaks this line, try to short from the re-test of 182.65.
The Beast moves fast. So I think it is important to have multiple options, and be flexible based on the actual price movements.
Hope this setup helps you build your own.
YJ Baik – Forex.Today @ Tokyo