News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bearish
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Mixed
More View more
Real Time News
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/UVvf51HiVP https://t.co/yywnE39MLU
  • The US Dollar is losing ground against ASEAN FX, with USD/SGD and USD/IDR possibly readying to extend declines. Will USD/PHP and USD/MYR follow? Find out from @ddubrovskyFX here: https://t.co/l705RWumj5 https://t.co/jBbMKYp0F5
  • There are many different types of forex orders, which traders use to manage their trades. While these may vary between different brokers, there tends to be several basic FX order types all brokers accept. Learn about different FX order types here: https://t.co/lIJdiz4xSz https://t.co/YUhC9cCDpy
  • The US Dollar has spent much of October giving back September’s gains. Is there any hope for change? Get your #currencies update from @JStanleyFX here: https://t.co/3EHa6PV5yH https://t.co/PrP9J2klJk
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/UalZ8cRSXB https://t.co/wDVd2QvcjO
  • The longer-term EUR/USD outlook will hinge on Thursday’s ECB guidance; any hint of a further easing of Eurozone monetary policy would weaken it, but that is far from guaranteed. Get your #currencies update from @MartinSEssex here: https://t.co/RmHCfIwdqp https://t.co/hvETa6mtft
  • Traders tend to overcomplicate things when they’re starting out in the forex market. This fact is unfortunate but undeniably true. Simplify your trading strategy with these four indicators here:https://t.co/A4dqGMPylo https://t.co/M8WTvZgx2K
  • The Australian Dollar was under selling pressure this past week, but it held its ground. Bearish patterns brew in AUD/USD and AUD/JPY. Will EUR/AUD, GBP/AUD try to break higher again? Get your #currencies update from @ddubrovskyFX here: https://t.co/04kzJSqgNG https://t.co/ulPk1UneMM
  • Stocks are set to endure a string of data releases with market-moving potential in the week ahead in the form of tech earnings, European GDP and more, even as the US Presidential election clamors for the spotlight. #equities update from @PeterHanksFX here https://t.co/R6tpEvfXJb https://t.co/7koHTyh2AK
  • As we round our way towards a new week, Cable is within the confines of a bullish structure with beginnings back in September. Get your #currencies update from @PaulRobinsonFX here: https://t.co/NIbRTVmjqq https://t.co/zYma4Iq4dP
GBP/JPY Setting Up To Resume 2300 Pip Downtrend

GBP/JPY Setting Up To Resume 2300 Pip Downtrend

2011-10-18 13:52:00
Walker England, Trading Instructor,
Share:

The GBP/JPY is currently one of the clearest trends in Forex. The last leg of the down move began on April 8th of this year with a high placed at 140.01. The pair has moved as much as 2,319 pips lower to our low found at 116.82 on August 22nd. As price bounced off daily resistance yesterday at 122.50 we will look for our trend to continue and lower lows to be established.

Fundamentally, the JPY still contends to be the safe haven currency of choice. The worse the global economy gets, conversely the yen will gain strength. When paired with a weak currency such as the GBP we are looking for our strong trend to continue. Retail Sales for the UK is on the economic calendar for tomorrow and will give us further insight into the strength of the GBP/JPY move.

GPB.JPY_Setting_up_to_Resume_2300_Pip_Downtrend_body_Picture_1.png, GBP/JPY Setting Up To Resume 2300 Pip Downtrend

Taking price into a 4Hour chart we can see our temporary reversal concluding. Price tested resistance on October 17th with a high of 122.65. The GBP/JPY has since broken out from its trend line support at 120.80. Breakout traders may await confirmation of lower lows and look to enter the GBP/JPY under the next line of support at 120.32 established from the October 13th low.

GPB.JPY_Setting_up_to_Resume_2300_Pip_Downtrend_body_Picture_2.png, GBP/JPY Setting Up To Resume 2300 Pip Downtrend

My preference is to sell the GBP/JPY currency pair on the creation of new lows. Entrys should be placed under 120.30 Stops should be placed above resistance at 122.50. Limits should look for a minimum of 400 pips near 116.50 on the creation of new lows while establishing a clear 1:2 risk reward ratio.

Alternative scenarios include price retesting resistance prior to a breakout.

Additional Resources

Price Action an Intro

How to Trade Triangles

Setting Trading Expectations from Daily Chart

---Written by Walker England, Trading Instructor

To contact Walker, emailinstructor@dailyfx.com. Follow me on Twitter at @WEnglandFX.

To be added to Walker’s e-mail distribution list, send an email with the subject line “Distribution List” to instructor@dailyfx.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES