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. See our updated Privacy Policy here.

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
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bullish
Wall Street
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
Gold
Bullish
GBP/USD
Mixed
USD/JPY
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
More View more
Real Time News
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/4zEwS7mFJE
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/nB2f5m56nq
  • 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/9S5tXIs3SX https://t.co/Q0yRRpMpPX
  • Emotions are often a key driving force behind FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here: https://t.co/eILWbFgHRE https://t.co/pSeSiNnmHe
  • 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/reRmDe1Ksp https://t.co/iVOEuK40rn
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here: https://t.co/SQUCCYRCIk https://t.co/ltEO5dpKux
  • WTI crude oil is currently trading up against major resistance via the 2019 and 2020 highs within the confines of a channel; something has to give. Get your market update from @PaulRobinsonFX here: https://t.co/MO9foRjm2y https://t.co/YhBFdvZDEb
  • The Dow Jones and S&P 500 outlook appears bleak in the near term as retail traders increase their upside exposure. At the same time, these indices confirmed bearish technical warning signs. Get your market update from @ddubrovskyFX here:https://t.co/fKCHELbOxo https://t.co/eVDwmFTaIg
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/8B8hqHahm1
  • The US Dollar finished off an eventful week after CPI and retail sales injected volatility into markets. FOMC is now in the Greenback’s sights as taper talks linger. Get your market update from @FxWestwater here: https://t.co/MHi0lfQ93j https://t.co/4XetwYAaNd
A Nimble Intraday Short in GBP/JPY

A Nimble Intraday Short in GBP/JPY

Kaye Lee, Head Forex Trading Instructor

Talking Points:

  • Dual Lines of Resistance in Play for GBP/JPY
  • Key Zone for Initiating New Shorts
  • The Ideal Time Frame for Taking This Trade

Mondays of late tend to be characterized by rather lazy price action, and this Monday looks to be no different. However, traders might be able to pull off an intraday trade in GBPJPY should it retest the highs of the day.

The story begins on the four-hour chart below, where price is now rising to challenge two declining lines of resistance. Normally, one would respect the longer-term uptrend, but this has to be considered in light of two potentially mitigating factors:

  1. There are dual lines of declining resistance in close proximity to each other; and…
  2. Mondays tend to be mean reverting

Guest Commentary: GBP/JPY Testing Dual Lines of Resistance

GBP/JPY is now rising to test a key resistance zone on the 4-hour chart.

In all, a somewhat countertrend trade could be considered, one that requires extremely defensive trade management.

The resistance zone is readily found using the space between these two lines of resistance, and while different traders will have drawn different trend lines with varying degrees of slope, most lines will fall within the highlighted zone on the below hourly chart. In addition, there are lines of previous horizontal support and resistance that lend further credence to these levels.

Guest Commentary: Key Zone for Initiating New GBP/JPY Shorts

The space between the two declining lines of resistance on the hourly chart of GBP/JPY helps define the area where new intraday short positions can be initiated in the pair.

The exact zone is 172.26-172.54. Price has already come up to test this area once, although this only provoked a lukewarm response from sellers thus far. Hence, it would be wiser to expect another upward push by the bulls before selling starts in earnest.

The ideal scenario would be for price to make a new high before entering on the 15-minute chart (see below). Triggers including bearish reversal divergence (preferred), bearish engulfing patterns, and/or pin bars would all serve as valid short-entry signals.

Should the trade work out, there could be 100 pips to be had as price heads down to retest the recent low. By comparison, the 28-pip risk zone seems small, and the 15-minute chart could likely produce even smaller risk.

A rough parallel channel can be seen on below the 15-minute chart. In situations of this sort, price is bouncing with approximately equal strength up and down, or at least it has been up to this point. By following the price action on the chart, one can see that a new downward push seems to be in the early stages right now. Thus, the most opportune place to enter would be if there is one last swipe to the high.

Guest Commentary: Shorting GBP/JPY on the 15-Minute Chart

A rough parallel channel on the 15-minute chart of GBP/JPY further validates the case for intraday short positions in the pair.

Of course, this may not happen, and the trade may not mature. However, if it does, it could prove quite worthwhile. As always, traders should be prepared to enter two or three times in order to get in on the move.

Also, as this move is opposite in nature to the larger trend, there should be multiple positions taken in order to better control risk. For that very same reason, part of the position should be exited relatively quickly, while the remainder can be left to run if this turns out to be the beginning of a longer swing down.

By Kaye Lee, private fund trader and head trader consultant, StraightTalkTrading.com

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

DISCLOSURES