GBPJPY remain pressured as rallies are sold

0
5


Medium term

/

Sell


Trade view /
5 minutes ago

Director / PIA First

United Kingdom


Instrument:
GBPJPY


Price target:
137.60


Market price:
140.45

Background
Three monthly failures within the past year have resulted in upside price action being capped. An evening doji star formation looks possible if prices remain pressured into the end of this month.

The weekly chart highlights a break of the upward trending support (ascending triangle) which leads to a further potential move lower.

The daily chart shows this more clearly and is the basis for today’s medium term trade idea. A 5th wave target, the June swing low and the yearly low offer potential targets.

With prices approaching oversold levels, there may be potential to sell into rallies at better risk/reward levels.

Parameters

Entry: Sell at current levels and a rally to 141.50

Stop: A break above 142.50 (moderate) or 143.65 (aggressive)

Target: 139.40138.65 & 137.60 

Time horizon: 6 weeks

Charts:

Monthly chart showing resistance barrier

Weekly chart showing upward trending break of support

Daily chart with trend line break and support targets

— Edited by Clemens Bomsdorf

Non-independent investment research disclaimer applies. Read more
A compiled overview of Trade Views provided on TradingFloor.com is found here






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