The new week started with Shanghai Index down (- 3.2%), Nikkei down (-1.5%).
Thus I am expecting today may be a Risk-Off day, meaning Japanese Yen may be stronger.
Also I still see Bearish divergence on GBPJPY H4 Stochastic.
Also good news for Bears! If we zoom in, you can observe H4 chart now shows Lower High. Thus I am expecting this is the end of pullback (up-trend from Sep 4th), and this pair will get back to the down trends.
OK, the direction has been set! SELL.
Where do we sell from?
The price has been dropping during Asian hours today. So
SELL ZONE 1: 186.00 – 186.25
Fib38.2-61.8% of today’s drop.
SELL ZONE 2: 185.70
If the price continues to go down and breaks the current floor, then we can play Breakout Strategy, selling from 185.70 ish.
The target …
In the case of SELL ZONE 1, let’s shoot for 185.00 ish (Fib 138-161%, DM1-DS2).
In the case of SELL ZONE 2, 180.00 ish (WM3 -> WM1. Of course, this will be a Swing trade)
Hope this setup will help you develop your own.
YJ Baik – Forex.Today @ Tokyo