What happened to GJ?!
I've recently been toying with the idea of adding GBP/JPY to my trading pairs, so I've been observing the price action to understand how it behaves. GJ dropped like a rock at the end of this trading week! Here's how I would have gone about executing this position...
At the end of February, bearish momentum stalled at HTF lows within the demand zone . On two occasions, buyers attempted to push the price up to take out structure highs but supply outstripped demand. On the third and final occasion, it looked like buyers may have had enough power to take out the highs with the bullish impulsive move. Highs at the supply zone were even breached, but it didn't last. Price failed to hold above the highs, broke back down into the the supply zone , then the bears took over.
On the LTFs (see below), at supply there is a bearish break of structure indicating early selling presence. Price then pulls back to ltf supply zone for the first entry. Another bearish break of structure follows, indicating price is continuing to break down. There is a further pullback to another ltf supply zone for the second entry. Shortly after, bearish momentum begins to kick in. There was a slight pause in the drop as price hit a small demand zone , however, holding through Asia into Friday would have brought significant gains as price continued to fall.
Some clean moves on GJ, think I'll be trading it before March is out
At the end of February, bearish momentum stalled at HTF lows within the demand zone . On two occasions, buyers attempted to push the price up to take out structure highs but supply outstripped demand. On the third and final occasion, it looked like buyers may have had enough power to take out the highs with the bullish impulsive move. Highs at the supply zone were even breached, but it didn't last. Price failed to hold above the highs, broke back down into the the supply zone , then the bears took over.
On the LTFs (see below), at supply there is a bearish break of structure indicating early selling presence. Price then pulls back to ltf supply zone for the first entry. Another bearish break of structure follows, indicating price is continuing to break down. There is a further pullback to another ltf supply zone for the second entry. Shortly after, bearish momentum begins to kick in. There was a slight pause in the drop as price hit a small demand zone , however, holding through Asia into Friday would have brought significant gains as price continued to fall.
Some clean moves on GJ, think I'll be trading it before March is out
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