Signal for 6/07/2009 for: GBP/JPYRecap of las week's events: Last week's total profit (or loss): Profit: 209 pips Had a great week in GBP/JPY last week with no loss incurred. OK, we are back again for hopefully another good trading week. Due to heavy market volatility we had no trades last Friday for the GBP/JPY pair. This currency pair did head further down after the London open on Friday 3/07. We had a gap at the start of this week of nearly 40 pips to the downside. We may experience some more downward pressure today it seems. We will just have to wait for the London open to have a better picture and trade accordingly. Today's Signals: Our levels of concern for today 6.07.09 are as follows: R3-158.975
Possible Scenarios: We had a gap of around 40 pips at the market’s open today. We will wait for the London open to dictate our decisions in today’s trading session. Buy Signal: If a buy signal is triggered today, it will be very tricky as we have lots of cluster formations above the pivot point for the day. Here we will need to be extremely cautious. I will wait for price to trade above our pivot point to consider a buy for the day. If indicators are pointing for an upward move we have some good cluster formation at 157.11 and a heavy cluster formation at 157.35 acting as strong resistance. To be on the safe side I will wait for a break of 157.35 level to start looking for a valid entry point. My profit target is set at 158.11. I doubt market will head up today buy we never know what may happen. This will be my only profit target for today as I feel that if market had to retrace back up this level would be the highest point for the day. Sell Signal: As I said earlier, we have some heavy cluster formation just above the pivot point for the day. These levels may act as heavy resistance for price to trade further down. At the moment of writing this analysis, price was trading some 80 pips below the pivot point. We may see price retrace back close to the pivot point by London open. In either case, if by London market price is trading below pivot point and 156.50 (where we have some good support), this will give me an insight that price may head down further. My first target is set at 155.65 where we have some heavy support. I will exit all my position here to maximize my profit due to the heavy support around that level. If price breaks 155.52 level, I will start looking for a valid entry signal with profit target set at 154.90. Please remember that, proper money management will be required here to maximize your 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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