Live Trade – GBP/JPY

Filed under: Live Trades |

I currently have a live trade in play on the GBP/JPY forex currency pair (the pair for the British pound and the Japanese yen). To begin with, Figure 1 shows the weekly chart for this pairing, and we will use this timeframe to assess the long-term trend. As you can see, the long-term picture shows that this pair is very bullish, with the 8-week exponential moving average crossed well above the 21-week exponential moving average, and the chart very obviously moving up from left to right. This bodes well for any bullish price action signals on the daily chart.

 

Figure 1.

Figure 1.

Figure 2 shows the daily chart for the same GBP/JPY pair. What you can see is that over the past few days, price has started to move back up after a slight retracement. Going back to Figure 1, you can see that this retracement hit a very important level of support/resistance (marked with a horizontal red line), and reacted to this before moving back up. With the 8-day exponential moving average crossing above the 21-day exponential moving average, this also signals that the bulls are taking control once more. So, when a bullish pin bar formed, this was the confirmation that I needed to go long in this market.

 

Figure 2.

Figure 2.

I put an order in to go long at a 50% retracement of the pin bar, with a stop loss placed just a few pips below the low of the pin bar, and an initial target set of four times the risk (although I will manage the trade depending upon what price action tells us). This order has now been filled, and we are in the trade. Hopefully, the bulls will now take full control, and we can start to reel in some profits. That’s it for today – and I’ll be back with more like this very soon.

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