Signal for 20/07/2009 for: GBP/JPYRecap of last week’s session Results – 110 pips profit There was potential to make more if I did follow my own entry rules to the “T” but 110 pips is still a good enough profit. I stayed out of the market on Friday where price did head up gaining back the 250 pips it lost in the Asian and European sessions. For today’s analysis, I feel that pair has an upward bias. We may experience a retracement at this point before market resumes its upward move. We may have an upward move this week but for now let’s wait and see what the London session has in store for us today. Today's Signals: Our levels of concern for today 20.07.09 are as follows: R3-157.76 Possible Scenarios: At the time of writing this analysis, price was trading well above pivot for the day. This lets me believe that we may see price moving further up today. However this will make our entry a bit tricky as I expect price to retrace before the open of the London market. If I am right, price may retrace back to 154.08. Buy Signal: As mentioned before I expect price to retrace at the level stated above. If at London open the price does retrace around my area of concern, I will start looking for a good entry point with first target set at 154.64 where we have some cluster formations acting as a good resistance level. I would highly recommend exiting your entire trade at this point due to the cluster formations around this region and above. This is where entering any buy signals may be tricky as we have another heavy resistance level at 154.90 At this point I will wait for a break of the 154.90 level before looking for a valid entry point. My profit target once entry is pinpointed is set at 155.58. We have some resistance at 155.20 on the way up to 155.58, so proper money management is necessary. We have a second target set at 156.05 where I feel price may reverse temporarily due to heavy cluster formation Please remember, those are simply possible target where price may head up due to heavy cluster formations and analysis. This is not 100% accurate, no system is. Take profit each time you reach a certain level and bring your stop to break even. Sell Signal: No sell signal today Remember that proper money management will be needed to maximize profit. Wait for retest of the levels given once broken or until a bullish candle is formed after the retrace (preferably on 15 mins chart making sure that the 20EMA and 50SMA obeys the rule of entry) PS – You may decide to use your own strategy and use those levels as entry and exit points Happy Trading Back to: Free Forex Signals Page Back to: Forex Trading Homepage
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