If you’re interested in finding out more information about this trade and many of my others, check out my personal trading blog. We’re seeing signs of GBP strength, and of JPY exhaustion, across the board on the daily chart. We’re also at key technical levels that I’ve tried before; it looks like GBPJPY, and many other yen pairs, are still in a range. I got stopped out at breakeven last time I tried this, but given the technicals, I think it’s worth trying again.

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If you’re interested in learning more about this order and many others, check out my personal trading blog. If the tight range of the candles over the past four trading sessions are any indication, accumulation might be forming on GBPJPY. Given that we’ve traced from the early May highs, we see a bullish checkmate/accumulation pattern in progress, and are just below the 50 SMA in a clear uptrend, I put on a buy order to go long at 169.96 with my stop at 169.16. I’ll move to breakeven at a close at or above 171.64. My long-term target profit is going to be at resistance near 192, though I might take half off somewhere between 172 and 174 if reversal signs emerge.

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The unemployment rate in the UK for the Dec 2013-February 2014 months was 6.9%, down from the 7.2% for the previous 3 months. This beat economists’ forecasts which was around 7.2% according to forexfactory.com. The 6.9% jobless rate is the lowest in exactly 5 years, since 6.7% was reported in April of 2009 for the Dec. 2008-Jan. 2009 period. The positive surprise for the UK economy sent the GBP soaring, though it was already pivoting towards a bullish continuation in the GBP/USD and GBP/JPY pairs…

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GBP/JPY has been sliding in April after failing to reach the March high of 173.58. Support: This week, GBP/JPY found support near the resistance area of a previous consolidation zone established in March, around 169.50. More importantly, a rising trendline coming up from the August 2013 low of 147.55 provided support again, keeping a prevailing uptrend still intact. As we get into the 4/16 Asian session, traders are pushing GBP/JPY to a new high on the week, breaking above a falling trendline that came down from April’s high of 173.13…

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The 4H GBP/JPY chart shows a market that has been consolidating since hitting a high of 172.83 on Jan. 2. As we get into the Friday session (4/11), the GBP/JPY is setting up at key support factors, with oversold condition in the 4H chart. Note that price is testing a rising trendline, one that is coming up from the Aug, 2013 low around 147.60. Price is also testing a previous consolidation resistance area as it briefly finds support at 169.45…

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The USD/JPY, EUR/JPY and GBP/JPY are all trading in ranges. The USD/JPY started to consolidate after a bullish swing on the back of last week’s FOMC statement. It has since been trading in the 102-102.68 range. A break above 102.70 could open up the March 2014 high at 103.75, which represents resistance of a larger area of consolidation. Above 103.75, the USD/JPY would be reviving an uptrend that has been developing since 2012…

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Check out this trade on my personal trading blog. I’m seeing signs of yen weakness — i.e. yen pairs heading higher — on numerous currency pairs. I’m already long CADJPY, and added an order to go long GBPJPY as well. Below is the daily chart of GBPJPY. We see price has pulled back to a support level that intersects a 50% Fibonacci retracement level in an uptrend, and is now forming a trading range. Is this accumulation paving the way for a move higher? If we look at the weekly chart, we can see there is not much resistance until we get to 190. This gives us a potential reward/risk almost 20:1.

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Follow this trade along with my others on my personal trading blog. I put on two orders: one to go long USDJPY, and other to go to short GBPJPY. The two JPY positions cancel each other out, so what is implicitly left is a short GBPUSD trade. Normally I don’t do synthetic trades like this, but today I did two of them. When it rains, it pours, I guess!  Here is the GBPJPY chart: And here is the USDJPY chart; note we’re zooming out to the monthly timeframe here, which adds another element to the synthetic nature of the trade. The trade is synthetic, but not symmetrically so. With these synthetic trades, I would not expect to lose on both; at most, I would lose on one and breakeven on the other. At least, that is the plan! 

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By: Dima Chernovolov   This technical analysis report is based upon a trade opportunity taken from Autochartist’s Market Reports.   GBP/JPY continues to rise in accordance with the following trade opportunity alert that was generated for this currency pair last Thursday. At the time this alert was generated, the pair was expected to rise to…

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