As you can see from the chart that this pairing really respects support and resistance lines ( the big players, banks probably love this pairing )
Price is now coming up to a well respected resistance area where we are expecting price to bounce so we can collect a few pips.
We will not be manually entering this trade but placing an order as if the trade breaks...
As you can see we have marked out our support turned resistance level on the chart ( green line ) and we have pointed out areas where this level has acted as a resistance on the daily timeframe ( purple arrows )
From here we can see bearish movement after this pairing has had a very good strong bullish run but has now hit that all important brick wall (...
Current structure tells us this pair is trading a range and hasn't shown signs of an upside break as the previous daily candlestick formed as a pinbar. Multiple rejections of this supply zone on the H4 timeframe indicates that price will retest the levels of around 1.1630 or even lower before possibly going higher and breaking this structure in the near future...
GBPJPY - short opportunity based on structure, as strong resistance reached as well as some form of RSI divergence present.
Sell limit placed little bit higher and therefore great risk rewards ratio acquired.
-on weekly quite strong resistence almost reached ( order for sell already prepared)
-on daily little bit of a move needed to trigger the trade
-stop based on fibs
-take profit based on structure mixed with fibs
- quite good risk/rewards ratio
This is a good zone to get involved in a shorting opportunity as soon as the Daily does not close above 129.50
As I enter on the Violation of the 1H Trend I have a Entry Stop Order below the Higher Low of the last swing.
If the 1H makes a new Higher Swing then my entry will be placed under the next Higher Low.
My first Target will be a re-test of the previous...