Today I want to share with you a setup on GBPJPY I have been waiting for the last few days. As the strong rally in GBPJPY & EURJPY tends to fade, im looking to short both pairs for a small retracement of approx. 150-200 pips each
1) H4 bounced yesterday @ 146.24, previous H4 support, now turned resistance. A failur to break above consistently today signals a corrective move down with initial targets @145 & 144.20. Further downside momentum could push GJ all the way to 142.90 & eventually 142, however as the decline advances I’m expecting the bulls to jump right back on the horse & resume the uprally (now confirmed on D1).
2) Accumulative divergence on H1, and what a beautiful one! 4 divergences in a row signalling pressure, with a possible 5th one coming today (if a double top is formed) to confirm once more that a retrcement is due.
I’m already short from just now, 146.30, with a new sell order @146.90. If the order is filled I will be in with an average of 146.60 & a target of at least 145.Â Neither of the positions/orders is too large, since I am trading against the trend & need to be able to bail out fast in case the bear pressure is defeated.
Good luck @ see you @145!