GBPJPY: Possible 390 Pips Big Move Up With a Weekly Outlook!
Hi traders, after coming back from a nice 200 pip profit from the previous GBPJPY trade I'm looking for another 390 PIPS to the upside even tough the main trend is down.
I've bought from the 23.6 fib as seen on the chart above and I'll long it until 61.8 to see how it reacts to the resistance line,
a break of that would most likely mean that the bulls are back and we can expect to reach our TP3 target =145.400
My bias for this pair is still bearish and it will remain so as long as the 143.30 (71.86 fib) resistance remains intact, if it breaks then we can expect further upside to 145.400 to be realistic.
Reasons to buy:
Keep in mind that the Japanese Yen related pairs tend to be very risk sensitive. This is probably one of the most risk sensitive pairs, so having the stock markets rally simultaneously is a huge help for this market which can move 100 pips in the blink of an eye.
The UK elections are tomorrow aswell at the time of writing, so have that on your radar because we can expect some big volatility!
I've bought from the 23.6 fib as seen on the chart above and I'll long it until 61.8 to see how it reacts to the resistance line,
a break of that would most likely mean that the bulls are back and we can expect to reach our TP3 target =145.400
My bias for this pair is still bearish and it will remain so as long as the 143.30 (71.86 fib) resistance remains intact, if it breaks then we can expect further upside to 145.400 to be realistic.
Reasons to buy:
- Currently the pair has formed a nice Bullish AB=CD pattern and is probably making a correction.
- The MACD has crossed the signal line which indicates a buy signal
- Double Bottom
- Touched the 140.6 which is a very important support, indicates possible trend change!
- Bullish butterfly D leg completeion near the 140.6 support line
Keep in mind that the Japanese Yen related pairs tend to be very risk sensitive. This is probably one of the most risk sensitive pairs, so having the stock markets rally simultaneously is a huge help for this market which can move 100 pips in the blink of an eye.
The UK elections are tomorrow aswell at the time of writing, so have that on your radar because we can expect some big volatility!
Comment:
Waiting for it to break the 142.720 level which would indicate further upside as predicted! A rejection of that would probably indicate further downside since there's a bearish bat pattern completetion near the level.
RSI is nearing the 70-100 region scale which suggests that the resistance level for the pair is near or has been reached and the rate is likely to fall, lets see!
RSI is nearing the 70-100 region scale which suggests that the resistance level for the pair is near or has been reached and the rate is likely to fall, lets see!
Trade closed: target reached
Trade closed: target reached:
Congratulations everyone on the profit! We have finally reached our final target. If you bought when it declined the trendline break then you've made about 400 pips, thank you for trusting my analysis!
We are also having a nice buy signal from the MACD right now, keep your eyes on it and thank you for the support!