GBPJPY Trade Set up ~ forex market news live
Trading without knowing what is happening on the weekly chart could be described as partially sighted trading. This is more important for the GBPJPY. I have earlier posted critical levels for the dragon. If you want to trade GBPJPY, learn these levels by heart and never trade in between. You can check some few posts before this to refresh your memory on these very important levels.
Let us examine our set up for GBPJPY as follows:
a) The weekly is on a bullish run for the past three weeks and has moved by about 700 pips so far
b) The weekly RSI since September 2009 has been reversing around 50 point mark
c) The daily RSI is currently around 65 point mark – it is get close to
overbought region
d) The next minor resistance is at 133 and a major at 135 area
How to trade this set-up
1. Monitor daily RSI until it reaches around 70 point mark
2. Wait for the next bearish daily candle around this area
3. GBPJPY will give you at least three daily candles or pin on a daily candle
to signal reversal
4. The top for now is 132.54
5. Monitor the next two to three daily candles.
6. 131.24 is the line on the sand now, wait for the daily to
7. Follow the train and know the first stop is at 130.00, with 126-125 area
being the next. Below 125, the possibilities are endless 123, 120, 118, 117.
8. In simple term, get ready to short and look out for at least three daily
candles or pin on a daily candle to signal time to pull the trigger.
Fortunately, yesterday’s (18/1/2001) daily candle gave us the pin.
Happy trading!
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