GBPJPY
i'm seeing a continuation pattern here on gbpjpy. price has broken the long term correction as well as a short term one. we've got a momentum shift candle and have entered at 135.127. i'm targeting 133.127 as thats the end of the correction. there is potential for price to continue to the down side past our target point, but its better to leave the markets at a clear demand zone than continue to hold and 'hope for the best'.
on the 4H current price is rejecting the 0.618 retracement with a bearish candle, so we can also take that as some confluence.
one thing i've noticed about GJ is that its corrections are fufilled most of the time, wanna succeed on this pair? trade its corrections and retests/double tops. THEY WORK!
the blue candle stick patterns show how history has repeated itself, and because in forex history repeats itself (most of the time) we can anticipate that this correction will repeat the strong drop before the correction.
now obviously i'm not saying this WILL play out, but it is highly probable, so that's why we take this.
DISCLAIMER
this is NOT a signal, if you enter this thats at your own risk, but this is just a forecast and im not responsible if you lose some $$$.
Trade closed manually:
I closed at 134.227 due to a strong rejection/reaction to a key level. we closed at around 88 pips in profit. ill wait and see how it reacts at this level to see if i could re enter