Posted by: joetradingplace | May 19, 2015

Watching Gbpjpy

Lets keep an eye on this pair, there is a very significant zone (185.00). Watch how price has reacted to this zone previously and look where price is now in relation to the zone. So there are two scenarios, either price will bounce off this zone and keep pushing higher…thats why i have moved my stop loss to just below the zone in case price bounces off, i will still be in the trade. Another scenario and the one i am favouring the break of the level and price continuing down….in this case, i will be stopped out but for a good profit, 600 pips locked in. So WHY do i favour price dropping…look at the daily chart, yu notice that price was in consolidation (green box) and it broke out, pushed higher, but struggled to keep moving higher and now yu can notice another consolidation forming. When price breaks out from a consolidation, it usually pushes without looking back, but in this case, it seems price if failing to pop through the 189 zone and 185 is a significant level for buyers to get their act together…and if they fail to defend that level, price will drop significantly. So lets keep our eyes on this pair in the coming days/weeks.

Screen Shot 2015-05-19 at 11.10.01

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