GBP/JPY Long: Same Level, Take 2 | Vantage FX

GBP/JPY Long: Same Level, Take 2

January 31, 2017

A couple of weeks ago, we were looking for a possible GBP/JPY counter-trend long. The Beast was sitting at a horizontal support/resistance zone and if it had have held then we were looking for that first intraday pullback to get long off of. But alas the level didn’t hold and price dropped lower through it.

Three weeks later and price is back at the zone again and the setup has some real promise.

GBP/JPY 4 Hourly:
160131_gbpjpy_4hourly
Click on chart to see a larger view.

That looks like a textbook trend line breakout which if you keep reading, would mean a possible entry short on a re-test. But how often do we see the textbook setups like this fail miserably. Nothing in forex trading is textbook! If it is written in a textbook then the smart money will so often do the opposite otherwise everyone would make money.

Ah this trading game is a strange one, I know!

GBP/JPY 15 Minute:
160131_gbpjpy_15minute
Click on chart to see a larger view.

So now zooming into an intraday chart, with that 4 hour horizontal support/resistance zone looking like it’s holding for now, the play might actually be to look to get long.

Your options are to aggressively get long on this current pullback if you think that the support zone has held, or you can wait and see if it properly breaks higher and then buy the first true pullback once you have that confirmation.

How are you looking to play GBP/JPY here? Open a live forex account with top Australian forex broker, Vantage FX.

Dane Williams – @VantageFX

Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Forex broker Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, forex news, research, tools, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently, any person acting on it does so entirely at their own risk. The expert writers express their personal opinions and will not assume any responsibility whatsoever for the Forex account of the reader. We always aim for maximum accuracy and timeliness, and FX broker Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.

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