AMTrader
Short

GBP/JPY Projected Bearish Three Drives Pattern

FX:GBPJPY   British Pound / Japanese Yen
GBP/JPY Bearish Three Drives

GBP/JPY is hanging, or better resting, on a very thin level of
intermediate support formed by a minor bullish trend line
currently. However, looking how close price came to closing
the gap between 142.20 to 142.60 at the end of May, 2018,
it seems very likely that it will now close this gap. The
reason why I believe it will, is because after price closed
below the second speed resistance trend line it got
rejected twice when it re-tested it, and above the 100 &
200 SMA have made a bearish cross over, thus, indicating
bearish momentum.

Whether we will see a 100% retracement back to 135.60
depends on what happens around the 142.00 level. If it
holds then obviously new highs could be formed after a
close above 156.00, if the 142.00 level does not
hold the last chance for the bullish trend to remain intact
is if the 138.80 level holds, which is approximately the
level of the bullish 100 & 200 SMA cross over.

Keep a close eye on USD/JPY , if it continues its short term
bearish correction expect GBP/JPY to continue dropping
as well.

Trade short 1 ( RvR ratio 2:1)
Entry: Close below 144.35
S/L: 145.42
T/P: 142.20

Trade short 2 ( RvR ratio 2:1)
Entry: Close below 142.20
S/L: 143.88
T/P: 138.84

As always, scale out your profits and adjust stop/loss to
suit your personal risk management profile.

Happy trading
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