Daily GBP/JPY analysis

I've been taking a back seat lately and just watching my short-term trades every now and then.

I have two GJ shorts from the high 238 region left (also two EJ).

Where did he go? Last I saw of him was on a chat service. He managed to find my hiding place and then he disappeared!

Based upon the view of the following two charts I am posting, I would speculate that the G/J is more bearish long term.

There should be one more nice push down to complete this Head and Shoulders Pattern.

This first chart is a Daily Chart using a Line Graph with a complete set of LWMA's.

Note: This is not a Trade Recommendation, but simply an analysis based upon a Head and Shoulder Pattern.
http://www.investopedia.com/universi...ts/charts2.asp

This is the second chart showing it using the Candles which brings a slight different look to the direction.

Based on the Fibo from the High at 251.09 to the Low at 219.30, we can see that we have cleared the following retracements thus far:
23.6 at 226.80
38.2 at 231.44
50% at 235.19
61.8 at 238.95

The High so far in this retracement has gotten to 240.64 which is a 38% of the distance from 61.8% to the 76.4% retracement which is very common on the normal retracements that have occurred on the G/J pair.

We are now on the return down breaking below the 61.8 then below the 50% before finding it's recent support at the 38.2 with a low at 230.27.

The next test is a break below the 38.2 line to test the 23.6 at 226.80 which is also the triangle line of the Head and Shoulders area.

I will post this fibo chart also.

Enjoy and Trade Wisely,

Ken

Okay, here is the picture with the areas of the Fibo's as per my last post.

Ken

Click on Picture to Enlarge

This thread needs to be picked back up. More than one type of system works for this currency. If we can share techniques then maybe we can help someone out with their trading. With that said here's my charts for today. I'm currently long.

Here's my 4 hour

Title: GBP/JPY intraday: turning up Summary: Update on supports and resistances. Story: Pivot: 233.08

Our preference: Long positions above 233.08 with targets @ 235.1 & 235.75 in extension.

Alternative scenario: Below 233.08 look for further downside with 232.45 & 231.65 as targets.

Comment: the pair and its intraday RSI have broken above their declining trend lines, a further bounce is expected.

Nice to see some different people posting and to see your posts here again Monarch,

My view from yesterday is basically the same and of course I'm long, the bears took it down again yesterday to retest the 233 area and with the benifit of hind sight I was premature, but the same setup remains.

I have support here now at 234.20 (pivot 234.17) this needs to hold for longs to remain.

Just my simplistic view of the market.

Time will tell.


EDIT: Anybody take a long at the support I mentioned, a +71 pip scalp for me. Of course it could have gone down but it was a very low risk entry I had a stop 10 pips plus the spread.

He's having a break from posting I guess.

I get bored with it myself but find it helps me focus when I do.

Curious as to the chat service you frequent Zoran would you share maybe pm me.

Cheers

I just use the one on fxsurfer.com
You'll need to register and it's not always busy.

mm....working on "the cobweb" system I guess

!!muy Buenos Los Comentarios Y Analisis Del Ud, Duke; Lastima Que Sean En Ingles Y Mi Idioma Sea El Español. Yo Los Traduzco, Pero Sin Embargo, A Veces Se Pierde Un Poco La Idea.
Sin Embargo; Estoy Inscrito En Ellos.
Lo Felicito.

Still looks long to me.

Broke out of the wedge this morning and is almost at the 235.5 level, may retrace some maybe down to the 234.20 area, before moving up again but there is a chance it will carry on trending up from here.

235.5 is strong resistance but if we can make it above will become good support for a move up to at least 237 .

My charts show the confluence of support that has given me confidence to keep longing from this area and shows the possible initial target area as mentioned in my previous posts.


Of course it may go down .

Interestingly the mid point of this channel will be around 237!!

I have been too busy during the past couple of weeks to post any analysis, but wanted to post what I am currently seeing.....over the past 3 months, on Fridays, there has been an 85% chance of a reversal within one hour of the London Open.

Today, I have 2 hourly time lines falling in the LO bar and two four hourly in the bar starting at 6am edt.....in 2 hours time......these representing times when GJ is more likely to make a chage, either by accererating a current move or by reversing . On the 15 min chart, the 2:30 candle (currently the high) had two TLs.

So far, GJ has held around the Daily R1 from the US close (I always work with the US close for pivots) also cable is currently at its R1 but UJ reversed from its R1 at 3:20 est.

So we are set for a reversal, but until (unless) cable can join UJ and turn down I have no signal - a close under a flat / falling 34 ema on the 5 min chart.

Thus at 4:35 est, the uptrend remains in force and must be respected.

Thank you all for sharing. Weekly is making a very bullish bar. On daily we are close to the middle of the larger triangle

4h

Great observation Islander! Thank you!

We have what looks like an almost complete bat on the Guppy 30min. It failed to hit the 88.6 level by a few pips. I added to my shorts at 235.00. Also a completed AB=CD on the Euppy. I closed my (Euppy) entries earlier and have just re-entered higher up.