British Pound Cross Pick 10.27.2011
After sitting on the sidelines on the Euro crosses, I am looking at the GBP/JPY as it threatens the downward trend from earlier this year. Although I haven’t traded Yen crosses for some time, the recent developments in the pound-yen have made it very appealing, and it seems as though the exchange rate will push lower in the days ahead as price action struggles to hold above the 50-Day SMA at 121.78. As the pair appears to be carving out a near-term top in October, we should see lower prices over the near-term, but I would like to see a close below the 10-Day SMA (121.42) to sell the pair. Should we see a close to the downside, I will look to sell the GBP/JPY close to 121.00 and will target the 10/10 low at 119.22, with the stop at 121.78, the 50-Day SMA.
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