GbpJpy (sterling Pound Japanese Yen) - Stands as one of the most volatile currency pairs. Including here also other Gbp pairs and one of my favorites GbpAud (Sterling Pound vs Australian Dollar) that can move more than 100 pips daily.
Having this in mind, this is why these pairs and including here also Gold (XauUsd) are not advised to be traded by new traders and traders who have small accounts.
Markets these days were crazy in general!
Looking EurUsd, I see that price will be reaching 1.25 very soon, GbpUsd reached 1.36 which I expect it'll reach 1.38 and UsdJpy is finding itself in big troubles since it slipped into 103.13 and I expect another bearish move to 101.2 area!
As per Cryptos, I congratulate every BTC holder, it is actually going to the moon, reaching it's all time high today at 23k.
Usually when I do my technical analysis on a pair I start on Daily Timeframe and I mark my support and resistance zones! A little tip: If you find it hard to define where the zones are, just switch to the line chart, mark the zones and go back to candlesticks.
As we can see here, GbpJpy is in bullish channel, respecting the support and resistance zone nicely! (note that here are marked only the nearest zones).
In the daily we do have only the major zones or as we usually call them Key Zones, at these areas we do expect price to react aggressively. Another tip is that don't try to mark every possible zone, that way you'll end up having minor zones every 5-10 pip distance, otherwise check only for those where price did change direction when it reached at that certain area.
Dropping on 4hr TF!
This timeframe is my favorite one, since I happen to be a day trader, 4h TF is what you actually got to pay attention to.
What we see here is a reaction to a resistance zone which was tapped a few times, and price did what would be named as trapping scalpers who bought near that zone touching Stop Losses and than moving upwards again! This is why I always like to trade after Break and Retest.
What I would love to see here is a Hammer Candlestick or Kangaroos Tail, which indicates a strong bullish movement! Anyways that is not enough, I'll drop further down in 1hr TF and check for a break out and a retest at 140.4 area.
After I get that, this is what my trade would actually look like! With a Risk Reward Ratio of 1:5.45!
Let me know what you think and what is your overview on GbpJpy!
theatdhe!
