True Forex Trader

Let’s summarize what we have got with GBP-JPY pair in Forex so far.

A. Major trend on daily and weekly charts is bearish.

B. Couple of weeks ago we have encountered a 0.618 Fibonacci retracement on daily charts where market has stopped one more time in attempt to go upwards.

C. Nice blue line on the pic above  is a daily support trend line; if broken will give us a reason to Short.

D. Red line is a daily Resistance trend line. Plus we have a solid yellow line - another  horizontal resistance level, which currently sets a border between bears and bulls territory. Breaking above red line and later above yellow sets us straight on an uptrend course.

E. What’s also spicy for upcoming Monday is that we’ve got a daily Inside Bar candle on Friday (a candle is entirely inside the boundaries of its preceding neighbor), which means the market was uncertain about its further direction on Friday and it is now time for a breakout above or below that Inside Bar.

Let’s also see if we get any gap on market Open.

For me it is so tempting to trade on Monday, but I’ll most likely keep a cool head and watch for a while which direction the market is preferring to take on. Last days GBP-JPY pair was quite aggressive and unpredictable, so it wouldn’t be surprising to get some whipsaws this time as bulls and bears pull from both sides… In addition, there are plenty of controversial confirmations on Forex indicators for both up and down directions.

Good Forex trades!

Filed under: GBP/JPY Forex Trading