GBPJPY Price Action Analysis – 9th Mar 2018
GBPJPY has been Bearish on the Daily chart. The price has been within a range on the H4 or H1 chart though. However, today’s price action and the Daily chart suggest that the pair might take a Bearish move later today. Let us have a look at the H4 GBPJPY chart.
The level of 147.510 has been a strong level of Resistance here. The level produced an H4 Bearish Inside bar as well today. If it produces an H4 Bearish Engulfing candle and makes an H1 breakout at the level of 146.585, then selling the pair would get us some green pips with a good risk and reward ratio. Let us have a look at the summary of the trade…
- Sell Stop Order: 146.585
- Stop Loss: 147.510
- Take Profit: 145.000
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
Both of the currencies of this pair have high impact news events today. The pair will be very volatile before or at the time of those news events. The schedule says that those news events will get over by GMT 15.00. This means we must wait to get the signal until the volatility comes to an end. At GMT 15.00 an H4 candle gets finished as well. We wait to see the H4 candle and then decide whether we would take the entry or not. By any chance, if the breakout happens before GMT 15.00, we might as well avoid taking the entry. There is no point to be swept away by news spikes.
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