Signal for 22/06/2009 for: GBP/JPY

Recap of last week's events:

Ok lets have a quick recap of last week’s events…

The GBP/JPY fell by at least 650 pips by mid last week to make back more that three quarters of what it lost at the end of the week’s trading session.

I had a loss of 60 pips in the GBP/JPY last week; reason was I jumped in the market too early before confirmation assuming that price will trade in my desired direction. Well it did go in the direction that I wanted however it got me out before doing the right move.

Ok let’s look at what we have in store for this week’s trading session.

Today's Signals

Our levels of concern for today 22.06.09 are as follows:

R3-162.042
R2-160.823
R1-159.792
Pivot Point– 158.573
S1-157.542
S2-156.323
S3-155.292

Possible Scenarios:

The GBP/JPY is in an up trend on the higher time frame but is going through a retrace on the intermediate time frames. So we may experience a downturn for the meantime until the market turns and heads back up.

At the time of writing this article, price was below our pivot point and heading to our first support of the day.

As said before I will be looking for only buy signals today and go with the trend set by the bigger time frames. At this rate I may stay put for today and wait for the market to head back up before taking any position.

My level of concern here will be the 158.30 level. A break of this level during the open of the London session will give me some evidence that we may be heading up later during the day. However, I will wait for a break of the 158.70 level to start looking for a buy trade.

Once this level is broken, I will wait for a retrace or retest of that level, even a bullish confirmation candle will do. My first target will be 159.90. There are some heavy cluster formations around the 160.10 level which may act as a major resistance level.

Thus our second profit target may be a bit tricky at this point, however it is set at 161.80 level. We definitely will encounter some resistance in the move up. These levels of resistance will be around 160.10 and 160.70. Ultimately if these levels are broken, the second profit target may be met successfully.

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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