Daily GBP/JPY analysis

Cable is at 246.02 now, good time to go long?

its crazy the way its moving on charts. feels like a morning trade day. I believe if 246 breaks and heads lower, we might see 244 soon (full retracement from June 27. But 246 presents as support for now.

Japanese mama woke up but they are struggling to fight the pressure.

There is some resistance on 246 clearly

Just a small word of advice for lots of traders in here, but if you don't understand WHY something is happening, it's probably not going a great idea to try and second guess it. If I was going to go long in this situation (and I'm not... at least, not yet) then I would only be looking at going long at major, major supports and aiming for 20-30 pip scalps before resuming the short.

This will be my strategy until this move shows signs of actually bottoming out.

245.40 - 245 is support

Amen to that. It wouldn't hurt to wait a day or two let the dust settle and wait for the bottom to show up.

From: (read full story)
http://news.tradingcharts.com/futures/2/6/95538662.html

I suppose it generally applies to GBPJPY as well:


FX - USD/JPY

The Japanese yen made substantial gains Tuesday as a bout of risk aversion permeated throughout the forex, bond, and equity markets. News that the S&P may cut ratings on $12 billion worth of subprime mortgage-backed bonds sent traders flocking to safer havens, as USDJPY and NZDJPY plunged over 100 points towards 122.00 and 95.00, respectively. With interest rates in Japan still at an ultra-low 0.50 percent, today?s price action signals that a rate hike by the Bank of Japan may not necessarily be needed in order to initiate a massive unwinding of carry trades and confirming the dangers associated with maintaining highly leveraged trades. Such one way bets will also encounter event risk this week as the BOJ is scheduled to meet on Thursday. The central bank is widely expected to leave rates steady this month, especially as the economy remains in deflation and with the LDP elections occurring at the end of the month. So does this mean BOJ Governor Fukui will move to normalize rates in August? There is certainly speculation that he and his fellow policy makers will discuss such a move, but they will face substantial resistance from the government, as officials such as Kozo Yamamoto and Shigeyuki Goto have recently spoken out against such measures.

The more immediate concern for USDJPY traders lies in the release of Japanese consumer confidence. The figure is anticipated to come in even weaker - not entirely surprising given the dismal status of wage growth. While the indicator is not a huge market mover, a particularly soft reading could help USDJPY return above its ascending trendline. On the other hand, a solid break through 121.70 could signal that even more substantial declines loom on the horizon.

get ready for 244. don't just go long because it feels like a level or resistance of its a buy area. just wait and watch. I completely agree with nathbear

Wow, quite a ride. I can't remember a ride this nice in a few months. Could it be the start of something, or a sizeable retracement short term?

Gu is joining the party.

If you think it was ugly so far, forget it. You didn't see "ugly" yet

I'm short GU and long GJ at 245.17. call it suicide, I call it heavenly whispers from afar. PS: made 30 pips on AUDUSD and jumped out in exactly 3 minutes. Dirtiest trade I have ever done, I think I'm going to shower now.

Good luck.

seems to have bottomed out at 245.

exited @ +120 pips, not bad for a one hour trade ^^

My trailing stop hit for a net profit of 298 pips on the short.

Looking for fresh signals for either long or short at this point.

You are trading the wrong market....this is the
gbp/jpy not the cable.

damn 4 pips to get to 244 and a nice bounceback! I am so effin confused now, but i went short and grabbed nice 80 pips. i wait for Japan to open now. Koni chi wa! (i hope i said that right)

Agreed, these corrections ussually last 3-5 days and we only got a 380 pips slide so far, nothing spectacular.
Just a few days and once we cleared the rate decision, buildup new long to shoot for the stars.
BTW still holding on to my AUDJPY long, no problem to weather a drawdown to the 98 area.

bounced back pretty strong! time to go long?

45pips good

if i was you, i'd wait till asia open. btw, its a massive pin bar on the chart, tempted to go long, but so hard to wait. almost 7pm