FX Reversals GBPJPY Begins Week at Highs
- GBPJPY Starts Week Breaking to Highs
- R4 Resistance Sits at 171.36
- Range Resistance Begins at 171.08
GBPJPY 30min Chart
(Created using FXCM’s Marketscope 2.0 charts)
The GBPJPY has started the trading week breaking above todays R4 camarilla pivot at 171.36. This movement towards high highs is at odds with last week’s trend with the majority of GBP crosses closing near weekly lows. Intraday momentum traders can take advantage of this directional reversal and continue to look for areas to buy the GBPJPY in the event prices progress towards higher highs.
In the event that upward momentum subsides, traders should look for a false breakout back in the direction of the prevailing trend. A move back below R3 resistance would signal and end of today’s breakout and suggest a return towards key values of support. Currently the USDJPY range measures 56 pips, with the R3 camarilla pivot at 171.08 and S3 range support found at 170.52. If price enters into the day’s trading range, traders should consider concluding breakout positions and look to trade in the markets new direction. A move below the S4 support line at 170.24, would open up the possibility of another breakout back in the direction of last week’s trend.
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---Written by Walker England, Trading Instructor
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