The analysis for GBP/JPY (British Pound paired with Japanese Yen) indicates a significant sell zone, characterized by the breaking of previous major support, which has now turned into resistance. The main resistance zone is identified between 190.9 to 191.4, suggesting a strong barrier to further upward movement in the currency pair.
Examining the data from big players and investors provides further insight into market sentiment. Over the last two weeks, there have been 81,000 short entries compared to 19,000 long entries, indicating a significant bias towards short positions. This sentiment is reflected in the daily reports, which show 70% shorts and 30% longs. Furthermore, recent data shows 58% sell orders, indicating a prevailing bearish sentiment among traders.
Considering technical analysis, the market volatility level of GBP/JPY over the past week is notable, with an Average True Range (ATR) of 1.24 and a total intraday range of 148.62%. This suggests heightened volatility, which can present opportunities for traders to capitalize on price fluctuations.
The proposed trade aims to capitalize on the bearish sentiment in GBP/JPY, with a target of 1170.8 pips and a 6.14% profit potential. A stop-loss of 40 pips is set to mitigate potential losses in case the trade moves against expectations. Additionally, four target prices are set to capture potential profits at different levels, providing flexibility in managing the trade.
Risk management is emphasized as a crucial aspect of trading, with traders advised to manage their risk effectively to protect their capital. By adhering to proper risk management principles and remaining vigilant for any signs of confusion or uncertainty in the market, traders can navigate the complexities of trading with confidence.
In summary, the analysis suggests a strong bearish outlook for GBP/JPY, supported by technical and fundamental factors. Traders are presented with an opportunity to capitalize on this sentiment through a well-defined trading strategy, while also prioritizing risk management to safeguard their investments.
Examining the data from big players and investors provides further insight into market sentiment. Over the last two weeks, there have been 81,000 short entries compared to 19,000 long entries, indicating a significant bias towards short positions. This sentiment is reflected in the daily reports, which show 70% shorts and 30% longs. Furthermore, recent data shows 58% sell orders, indicating a prevailing bearish sentiment among traders.
Considering technical analysis, the market volatility level of GBP/JPY over the past week is notable, with an Average True Range (ATR) of 1.24 and a total intraday range of 148.62%. This suggests heightened volatility, which can present opportunities for traders to capitalize on price fluctuations.
The proposed trade aims to capitalize on the bearish sentiment in GBP/JPY, with a target of 1170.8 pips and a 6.14% profit potential. A stop-loss of 40 pips is set to mitigate potential losses in case the trade moves against expectations. Additionally, four target prices are set to capture potential profits at different levels, providing flexibility in managing the trade.
Risk management is emphasized as a crucial aspect of trading, with traders advised to manage their risk effectively to protect their capital. By adhering to proper risk management principles and remaining vigilant for any signs of confusion or uncertainty in the market, traders can navigate the complexities of trading with confidence.
In summary, the analysis suggests a strong bearish outlook for GBP/JPY, supported by technical and fundamental factors. Traders are presented with an opportunity to capitalize on this sentiment through a well-defined trading strategy, while also prioritizing risk management to safeguard their investments.