Gbpjpy

[jimm 10]

Hello fellow traders,

I am being told the downside to the GBPJPY is soon to be in great favor. Does anyone else agree with this? It comes from a reliable trading group. But I would love to hear if anyone else is considering this too.

Jim M

[Mysticforex 13]

Hi Jimm, Welcome to Traderslaboratory.

 

I don't listen to what other people say, However, If were looking to short GBP/JPY I would watch my charts. This is what I see now for a possible short.

 

On the chart I have 2 TLs, The upper one is from the 1 hour TF, the lower one is from the 4 hour. On a candle close below the TL on the 1 hour chart, I would look for a test of the TL on the 4 hour chart. This set up is called a "Two Trendy". What makes it more interesting is tha the 1 hour TL is right around Mons S3 and the 4 hour TL is a bit above the Weekly Pivot.

On a candle close below the Weekly pivot, on the 4 hour chart, 12829 would not surprise me. It's a little too early to commit to that, but I would take the TL to TL short if I was awake/around to see it.

[Mysticforex 13]

I should have added that if price comes down to the TL on the 4 hour TL, a bounce should not be totally unexpected. I that scenario unfolds, drop to a lower TF to determine direction.

As an example, I caught a nice bounce off that TL last Tues, 2/08.

Edited February 26, 2011 by Mysticforex

[Mysticforex 13]

I didn't short at the first close below the TL because the candles were kind of "Doji" looking.

Did finally short at the Daily Pivot on a normal looking candle. Stop is above the most recent high@ 13440. I have a "Price Alert" set for if/when it reaches the TL on the 4 hour.

If it looks like it's going to bounce I'll get out. If it looks like it will continue south, the next key area will be around 13210.

BTW I have a reliable "FREE" price alert site that will send you an sms awhen price hits whatever level you select. If anyone is interested, leave me a message here on the thread.

[Mysticforex 13]

I didn't short at the first close below the TL because the candles were kind of "Doji" looking.

Did finally short at the Daily Pivot on a normal looking candle. Stop is above the most recent high@ 13440. I have a "Price Alert" set for if/when it reaches the TL on the 4 hour.

If it looks like it's going to bounce I'll get out. If it looks like it will continue south, the next key area will be around 13210.

BTW I have a reliable "FREE" price alert site that will send you an sms awhen price hits whatever level you select. If anyone is interested, leave me a message here on the thread.

 

 

Well I'm out of this one, looks like we're going for R3.

[TraderWill 11]

Hi Jim, I don't know what the GBPJPY prediction is based on, but there are some smart people out there and it could well be correct. I looked at the weekly chart for the pair and on that chart you can see that it's been moving sideways for about two years now, after a big drop in 2008. Matter of fact since September '09 and now it's been stuck between 125 and 150. Eventually price will break out of this range, but I wouldn't predict in which direction. I'd wait for the break to happen and then look for an opportunity to get on board the new trend.

 

Good luck.