Today I wanted to give you a few thoughts regarding a short term trend that I expect for gbp/jpy in the coming week. You might recall that I had told you about my expectations towards the pair. If you read my previous posts you will find out that I expected gbp/jpy to find a top at around 133.00 level and sure it did. I retain my tone of selling as I see the pair could be going down 128.00 level. From 4 hour chart I see that the pair topped out and made a reversal pattern.
It is now sitting quite close to a support level at 1.3048 (support is at 1.3018). I go down with the market if the level is broken. So the sell order is below 1.3018 and the stop is at 1.3115. The stop is about one hundred pips, but it is not very big for a pair like gbp/jpy. Remember, it can easily move three hundred or even more pips a day. Of course, your profit should always be bigger than losses. It is the only way you are going to win in the game. Take profit is at 128.00 level where I see the next level of support.
Read my previous posts:
Disclaimer
Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.