gbp/jpy analysis

[fibo777]

As mondays are usually reversal days I expect reversal today. I entered short in gbp/jpy at 134.98. Two points of resistance were broken. Some sort of breakout trade.

[Enivid]

Originally Posted by fibo777

As mondays are usually reversal days I expect reversal today. I entered short in gbp/jpy at 134.98. Two points of resistance were broken. Some sort of breakout trade.

Do you mean pullback trade? Going short at the top of the channel is a pullback trade as you expect a price to go back down to the lower border of the channel.

[fibo777]

Originally Posted by Enivid

Do you mean pullback trade? Going short at the top of the channel is a pullback trade as you expect a price to go back down to the lower border of the channel.

No, that is a specific monday reversal trade. If we have an up day on friday, we usually have a reversal on monday. That's what I noticed.

[fibo777]

Originally Posted by fibo777

As mondays are usually reversal days I expect reversal today. I entered short in gbp/jpy at 134.98. Two points of resistance were broken. Some sort of breakout trade.

Closed that one at 134.55 near former support and now have just opened a long at 134.90 and stop is at 134.56. It is an asian high breakout trade.

[fibo777]

Originally Posted by fibo777

Closed that one at 134.55 near former support and now have just opened a long at 134.90 and stop is at 134.56. It is an asian high breakout trade.

Exited that one at 135.50. Looks like breakout is real. Buying on dips. Not opened any trades yet. Most probably I will have to buy when the highest high is taken out.

[fibo777]

Originally Posted by fibo777

Exited that one at 135.50. Looks like breakout is real. Buying on dips. Not opened any trades yet. Most probably I will have to buy when the highest high is taken out.

The price is retracing. Had minor 20 pips loss. Support is still valid at 136.00 -136.40 which was the high of the ugly range we have been in. We have to wait and see if this level holds. It will be clearer tomorrow. I will see if there is opportunity to go long or short in the early european session. No orders for now.

[fibo777]

Looks like 136.00 level was not really broken. I would buy 136.30 and sell 135.85 (in case break out wasn't real). Buy order has just been opened.

[fibo777]

Originally Posted by fibo777

Looks like 136.00 level was not really broken. I would buy 136.30 and sell 135.85 (in case break out wasn't real). Buy order has just been opened.

False break up, but as I placed my stop at breakeven, so did not have any loss. Reversed and went till former resistance 135.55. Not much meat, but... I will watch carefully 134.40 level as it has some history and see if support holds there. Back into range. But… fridays are breakout days. Let’s see what happens tomorrow.

[fibo777]

Fridays are not too good for pure technical trading. I am going to concentrate on news today, especially US GDP. News trading should be the best choice today. If gbp/jpy retraced from present level and then again went up, I would go with a tiny long up.

[fibo777]

Originally Posted by fibo777

Fridays are not too good for pure technical trading. I am going to concentrate on news today, especially US GDP. News trading should be the best choice today.

Following my forex news trading method went long after US news at 135.50 and exited at an even number 135.90.