Signal for 1/07/2009 for: GBP/JPY

Yesterday’s session did not bring anything exciting. None of my entry rules were met, which made me stay out of the market.

Hopefully we should see some good action today and profit from the market.

Today's Signals:

Our levels of concern for today 1.07.09 are as follows:

R3-161.849
R2-161.044
R1-159.785
Pivot Point– 158.98
S1-157.721
S2-156.916
S3-155.657

Possible Scenarios:

WelL...this pair is going though what seems to be a retracement at the moment. I won’t try to predict the future but rather see how price reacts against the major support and resistance level we have for today.

Buy Signal:

For a buy signal to be triggered, I will wait for the London open and let price trade above the pivot point of the day where we have some good cluster formation acting as support.

Once this is done, wait for price to break the 159.23 level before looking for a good entry position. My first target from there is set at 159.70 where we have some major resistance.

I will exit half of my trade at this level and bring my stop loss to break even and let the rest run to 160.55 where we may have a second target.

For those who want to be on the safe side take out your entire position at 159.70

Proper money management will be required if you decide to profit from that move.

Sell Signal:

For a sell signal to be triggered, I will wait for the London open and let price trade below pivot point. Here we have some good support level below the pivot point of the day making our sell entry quite tricky. Thus, at this rate I will start looking for a sell only if the 158.23 level is broken.

My first profit target, if the above level is broken is set at 157.70. My second target is set at 157.30 where I will exit most if not all my position due to heavy cluster formation acting as major support.

Money management is crucial to stay on the winning side.

P.S- before taking a trade wait for a retest of those important levels I have outlined. I use a 20 EMA, 50 SMA, 200 SMA and two 5 Smoothed MA with one high and the other low.

Please, if you have your own trading style stick to it and just use those levels as a reference.

Happy Trading

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