DislikedBUT... All averages were rising and price was above them and above the daily pivot, so no short should have been taken, right?Ignored
The bigger trend on the Gbp/Jpy is down. The high yesterday was 226.86 and the low was 222.41 then it started to retrace. The 50% retracement of that move was 224.63. It retraced to 224.84 so it was reasonable to expect that was the end of the retracement also the Daily S1 support was in that area. The retrace to that high was actually the counter trend trade since most of the move down was below Daily Pivot. Daily S1 support in this case acted as resistance plus the signals were there to initiate a short trade. That's why top down analysis,[The Big Picture] is important. In the long run this pair is on the way down towards the 200.00 area. You're right about the averages were rising and price was above them but remember all moves come to an end and it's up to us to determine when to change direction, through price action, pivot points and fib levels. This gives us a confluence of events to make an informed decision.
Hope all of this made sense to you underthehedge, Good questions by the way!! Take care....T-Wolf