There is a potential opportunity to buy the GBPJPY at its current level after a 2 day period of retracement back to its current level. In an uptrend, it makes sense to buy the dips! Even though it has not made it back to the level of resistance at (approx) 17354 (mentioned in our last report and MarketScope webinar), it is respecting an intermediate trendline and has made a higher low. In short, its current level looks good, in our opinion.
_20140710075826.jpg "GBPJPY")
Wednesday closed as an inside bar, which is a reliable signal to us that there is a shift in direction from the sellers who created the retracement seen over the last three days and a point as where the buyers perceive “value” to come back into the market to buy.
This “buyer/bullish” inside bar is resting against this intermediate trendline (4th test)and has rejected the previous swing high (made on the 19th June) but as support. This is an ongoing theme with this pair as the swing high of the 6th June also acted as support after a higher high and pullback were both made.
Furthermore, the hourly picture looks bullish with the higher low made yesterday represented on the smaller timeframe as a bullish “W” shaped formation. This, currently present, has been seen twice previously before the market accelerated upwards.
_20140710075803.jpg "GBPJPY")
Bounce traders will typically trade the break of Wednesday’s inside bar’s high (plus spread and an additional pip) with their stoploss below Wednesday’s low (minus spread and that extra pip). If they are triggered into the trade, they will typically target a high probability reward profile with small reward by targeting the previous swing high at 175.38. Those who are more aggressive in their profit will simply let their trade run.
Wednesday closed as an inside bar, which is a reliable signal to us that there is a shift in direction from the sellers who created the retracement seen over the last three days and a point as where the buyers perceive “value” to come back into the market to buy.
This “buyer/bullish” inside bar is resting against this intermediate trendline (4th test)and has rejected the previous swing high (made on the 19th June) but as support. This is an ongoing theme with this pair as the swing high of the 6th June also acted as support after a higher high and pullback were both made.
Furthermore, the hourly picture looks bullish with the higher low made yesterday represented on the smaller timeframe as a bullish “W” shaped formation. This, currently present, has been seen twice previously before the market accelerated upwards.
Bounce traders will typically trade the break of Wednesday’s inside bar’s high (plus spread and an additional pip) with their stoploss below Wednesday’s low (minus spread and that extra pip). If they are triggered into the trade, they will typically target a high probability reward profile with small reward by targeting the previous swing high at 175.38. Those who are more aggressive in their profit will simply let their trade run.
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