330 pips in 4HR! what happened??

330 pips in gbpjpy 4HR! what happened?? i need an explanation for this. i made 72 pips too but what triggered this move?

ECB lent 100 billion euros to alleviate credit crunch.BNP and a German bank reported losses in hedgefunds.

I assume you are talking about Eur/JPY or some other Eur pair?
If so, it was hedg fund troubles, same old story. Keep an eye on JPY crosses, since Japan has pretty weak banking, and sooner or later they will probably get nailed as well.
As for Eur/Jpy, look at the hourly chart for the last few days; you see that plateau across the top for yesterday? That often means problems (buyers were saturated). It's like tinder just waiting for a spark. I was surprised it went down so far though...

Also note the ref at the end of the linked article to Japanese hedging against next week.
http://www.bloomberg.com/apps/news?p...refer=currency

Whoops, reread your post, & noted you were in GBP/JPY. Sorry, don't have my glasses on yet

As far as techs..

Resistance in Usd/Jpy that lead the others.

382 Fib retraction from 124.13 - 117.17 decline (by the pip...)

H4 100 SMA (by the pip)

Daily 200 EMA in the area too... trouble to get above it since the drop below.

Techs combined with Funds.. and you know what happens.

Hi Folks !

About 250 Pips since Frankfurt Open isn't bad
10 lots/pip used....over currenex

I like this Hedgefonds stuff !!

Greetings and happy trading

Bernhard

Hi Folks !

By the way I traded EUR/JPY pair without knowing whats
going on behind the curtain..

I just followed my nice sweet signals

Greetings

Bernhard

It might have been the Goldman Sachs rumor regarding the effect of the sub prime lending market on overall credit, but whatever, it created some great trading opportunities. Did you notice that nearly every USD pair gapped at exactly 12:00 pm.
The strategy I use for filling the gap is to set an entry order at the level of the start of the gap (gap up go short gap down go long) and a take profit at the other end of the gap. Gaps don't occur often but nearly everytime they do they will be filled shortly after. The trick is to use SL at least as great as the preceding 3 bars. I am only paper trading but I took over 450 pips on 5 pairs yesterday.

Hi Folks !

Here is a snapshot of my point of view today

Happy trading

Bernhard

this is a difficult situation for the Markets. Even if US made a rate cut in november, it still might not bring investors money back

It's still not too bad, the Dow's is still up on the week, and it's only down 5% from it's peak....We may be in to a long decline though.

Yep, the thing is that all asset classes were at astronomically high levels that even, what we perceive, as a rapid decline in them still leaves them well above historical highs in case of the Dow, or at multi decade highs in the case of the high yield pairs.

Agreed; so far the CB's have managed pretty well in controlling the fall, but it's early days yet. I just hope they don't go too far the other way & actually start propping the markets up.

Folks, this is nothing. A nice little pullback. When GBPJPY gets in the 200-210 area, then start paying attention...