Signal for 23/06/2009 for: GBP/JPYRecap of yesterday's events: The GBP/JPY did not meet the entry criteria yesterday. However as you may have noticed the support levels given did hold for yesterday’s session. I personally did not take any trades on the GBP/JPY. Ok let’s look at what we have in store for today’s trading session. Today's signals Our levels of concern for today 23.06.09 are as follows: R3-160.727 Possible Scenarios: The GBP/JPY, after the massive fall in price in yesterday’s session gives some insight that we may be in a down move today too. The higher time frames are pointing down making me believe there is more room for price to move down. We are having what seems to be a head and shoulder formation of the higher timeframe, thus if that formation consolidates; we may see price head further down. 1- Buy Signal As I am writing this article, price is below our pivot point by nearly 200 pips. A big price gap like this let’s me believe that we may see a slight retrace at the London open before heading back down. However, we have good support if price trades above or good resistance if price trades below 155.70 level (some good cluster formation). If at the London open price is trading above that level, we may see market move all the way back to the pivot point. In which case, if price breaks pivot point and trades above it, we may see a move up for the day. Here I will wait for a break 157.60 level to confirm a buy, This is quite tricky as this level is near our pivot point, so due care should be taken here, making sure that 20EMA, 50SMA and 200SMA meet the correct entry criteria on the 15 minutes chart. P.S- (To be on the safe side you may want to wait for a break of the 158.40 price where we have heavy cluster formations) If trade is taken at around the 157.60 level, the first profit target will be set at 158.20 and the second profit target will be at 159.60. This is if our moving average keeps heading in a straight up line giving us an insight on the strength of the market.
2- Sell Signal As said before at the beginning of my analysis, I believe there is more room for a down movement. Thus, at this rate if price is still trading below pivot point for the day and 155.70 holds until the open of the London market, we may see price head down for the day (which is the most likely outcome). I will be looking for a sell signal at the London open if price is below the 155.70 level. If price is already away from that level wait for half an hour, there may be a slight retrace (before heading down). Wait for a break of the 155.30 price before taking any trades Once we break that level it will be our confirmation that we should start looking for a good entry point. The only profit target is set at 153.50, thus proper money management is in place. Always take out half you position once you are mid-way to your profit target and bring your stop loss to break even. (We may encounter some support at 154.80, which is our support level for the day). P.S -If you want to be on the safe side wait for a break of 154.80 level and start looking for entry then. P.S.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. Happy Trading. Back to: Free Forex Signals Page Back to: Forex Trading Homepage
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