Interesting structure- if GBP/JPY can break the horizontal green line then we could potential see price retrace back to 50% level on fib which also corresponds with a significant level of structure, if price breaks below this level we could watch out for the 61.8% level and look to exit the trade here or be on alert.
So we have just bounced off a weekly resistance point creating a new higher low which is the first sign of shorting this currency pair. Secondly we have a nice engulfing candle which has closed on the breakout of a trendline. Thirdly we have got our first crossover with the MA's. the first initial target should be the monthly support line (RED)
Been a while waiting for our next trading opportunity but the important thing here is we don't try and force a trade. We currently have an at market Bat formation on EURJPY 4H, providing us with a 1.5 R:R to target 1. Will be looking for a press to the downside and the nice indecision candles around this area suggest selling pressure.
As always, trade...