Live Trade – GBP/JPY

Filed under: Live Trades |

 

In addition to the setup that I talked about on the XAU/USD pair today, I also have a live trade order in on the GBP/JPY forex currency pair, which for those of you that don’t know, is the pair for the British pound and the Japanese yen.

 

Figure 1.

Figure 1.

If you take a look at Figure 1, you will see the daily chart for the GBP/JPY pair, and this is the only chart that we will need to look at for this particular setup, as all of the information that we need is contained within this chart.

 

At the top of the chart, you will see a horizontal green band, which marks in a particularly significant area of support/resistance. This area has been respected no less than eleven times in the recent past, making it an extremely important level. What you can see is that price has recently broken to the downside, with the 8-day exponential moving average crossing below the 21-day exponential moving average. Price has since bounced and moved back up a little to our area of support/resistance. However, once at this level, price could not close above the level, and formed something of a pin bar, with a very long upper-shadow. This shows a clear rejection of our support/resistance level, and as such, I have put a short order in at a 50% retracement of the pin bar, with a stop loss placed just a few pips above the high of the pin bar, and with a modest target set of just two times the risk. If you look at the 4-hour chart, you will also see a very well defined pin bar at this swing high – which confirms the support/resistance level and the significance of it. Well, that’s it for today – and I’ll be back tomorrow with more forex price action trade examples. Until then, have a great day.

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