Dear Traders,

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.

2015-09-14_13-17-09-GJ1

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.

2015-09-14_13-21-24GJ-2

 

OK, the direction has been set!    SELL.

Where do we sell from?

2015-09-14_13-26-10-GJ3

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

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