GPP/JPY Key Points
- Higher time frame, GBP/JPY bearish trend.
- Price breaks out of trend line and retests previous resistance as support.
- Retest with a higher low shows trend change.
GBP/JPY Technical Analysis
So here we are at the end of another week.
Let's maximise our last chance to make some money and end the week on a high, shall we!
What better place is there to look for a chance to make money in the forex markets, than inside the mouth of the beast - GBP/JPY.
Take a look at the 4 hourly chart that caught my eye below:
All I'm looking at here is a pretty obvious bearish trend.
I've drawn in the trend line to highlight it, but in true keep it simple stupid style, you really shouldn't have any trouble spotting what I'm looking it.
Where the trend line does help is for the breakout and subsequent retest of previous resistance, this time as support.
Now zoom into the hourly chart and let's have a look at some real intraday price action:
Here you can see that price retraced to the final area of short term resistance before breaking higher.
It retested that previous short term resistance as support, creating a higher low in the process and confirming a trend change.
These are the spots you need to look for in order to get tight entries, with excellent risk:reward.
I don't think this setup is gone by any means, either.
Keep an eye on the hourly and 15 minute charts and see if these previous short term areas of resistance, continue to hold as support.
Contrary to popular belief in trading circles, there's no rush.
You will get multiple chances to enter.
The question becomes, will you take them?
Best of probabilities to you.
Dane.
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