GBPJPY
After a strong bullish retracement, the pair succeeded to cross the 0.618 fib level on the daily. However, just after that, we can notice a strong pullback, a sign of exhaustion that pushed GBP JPY down to the 0.5% fib level. Historically we also can notice a bearish zone just above the current higher high. We have had a selling wick just after the bearish candle from the previous lower high on December 13th. Together even if the pair managed to rebound from the 0.5 level, it suggests the current pullback be followed by a larger swing back to the 141 handles. In order to lure buyers to capture more Sell volume, the last impulse could be up to 143.9x price range but the 143.6x area is more likely to be a reversal point.
Comment:
The timer was out before I finished corrections ;). The selling wick I signals was December 5th and what is interesting is a similar candle pattern on the daily on January 29th.
Comment:
We are in the process of that pullback with a swing of 50 pips+ from the 143 handles during the US session. China being off for China New Year and during Japan time who or more accurately what is trading? ;)
Trade active:
My first entry was 143.81 and I took the first profit of 40 pips on that first leg.