GBPJPY Reversal Setup- Short Scalps Eye 182
- GBPJPY breaks weekly opening range- Shorts favored sub 186.96
- Updated targets & invalidation levels
- Event Risk on Tap This Week
Chart Created Using FXCM Marketscope 2.0
- GBPJPY trading within descending median-line formation
- Immediate resistance into 185 backed by 186.95- bearish invalidation
- Support objectives at 183.37 & 182.03
- Daily RSI holding sub 50 & support trigger break- bearish
- Event Risk Ahead Limited
Notes:GBPJPY is trading within the confines of a descending median-line formation off last week’s highs, with a break below the initial weekly opening range/trend-line support now coming into the 50% retracement of the advance off the September low at 184.20.
The immediate short-bias remains in play while below the slope resistance / 185 with a break of the lows targeting 183.29, 182.87 & 182. A breach above resistance risks a rally towards 186 with our broader bearish invalidation level at the upper median parallel / 186.96.
Note that this is a wide-range setup with a quarter of the daily average true range (ATR) yielding profit targets of 55-58 pips per scalp. Event risk is rather limited this week with only Japanese CPI & UK Mortgage approvals on tap so we’ll be watching broader market sentiment for guidance.
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Relevant Data Releases
Other Setups in Play:
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- Webinar: FOMC Setups We'll be Trading as Yellen Takes Center Stage
- GBPUSD Rebound Sets Up Clear Scalp Levels Ahead of Major Event Risk
- Scalping GBPAUD Pullback- Targets in View Ahead of Aussie Data, BoE
---Written by Michael Boutros, Currency Strategist with DailyFX
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