Scalping the GBPJPY Reversal- 180.30 Support Key
- GBPJPY Reversal targeting initial support objectives
- Updated targets & invalidation levels
- Event Risk on Tap ThisWeek
Chart Created Using FXCM Marketscope 2.0
- GBPJPY turns over on the March open around key resistance 184.00/27
- Now riding former TL resistance as support- break needed to maintain short bias
- Interim support 180.24/32 (bullish invalidation)
- Subsequent objectives at 179.12 & key support at 178.11/31
- Resistance with the upper median-line (blue) backed by 184.00/27(bearish invalidation)
- Daily RSI back sub 50- bearish (note pending resistance trigger)
- Event Risk Ahead: UK Construction Output on Friday & the BoJ on Tuesday
Notes:We’ve been tracking the sterling crosses all week long with the push into resistance early in the week triggering a reversal across the block. GBPJPY is now coming into an initial area of support defined by the highlighted range between slope lines and the 38.2% retracement at 180.91. A break below this region is needed to maintain our short-bias targeting immediate support at 180.24/32. Subsequent support targets are seen at 179.12/28 with critical support seen at 178.12/32.
Interim resistance & immediate bearish invalidation stands at 181.70 with a breach above targeting 182.60 & the upper median-line parallel (blue). Bottom line: we’ll favor selling rallies / support triggers while below 181.70 with a break sub 180.24 needed to maintain our immediate directional bias. A quarter of the daily ATR yields profit targets of 34-37pips per scalp. Caution warranted heading into the UK data tomorrow and more significant event risk next week with UK employment, the Bank of Japan & the FOMC policy meeting on tap.
* It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.
Relevant Data Releases
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---Written by Michael Boutros, Currency Strategist with DailyFX
For updates on this scalp and more setups follow him on Twitter @MBForex
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