GBPJPY Short it down till 134 then buy back up till 143
The GBPJPY has been on a long term decline starting since the middle of March. The currency continues on the downtrend and is approaching long term support at 134.
Despite it rising slightly in June, I believe that it is only a short term thing as the RSI approaches overbought territory and from previous examples when price was previously at these RSI levels there have always been big drops after that.
Suggest 2 trades:
1. In the short term, short the GBPJPY till 134.
-Open short when RSI passes 70 and looks to turn direction, look to MACD for advise on when to enter short position
-Stop buy at 139
-Look to close position at 134.5
2. Long term look to buy at 134 and look to sell at either 143 or the extension of the downward trendline
-Buy at 134.5
-Stop loss at 131
-Sell order at 143 or if downward trendline is first hit
Despite it rising slightly in June, I believe that it is only a short term thing as the RSI approaches overbought territory and from previous examples when price was previously at these RSI levels there have always been big drops after that.
Suggest 2 trades:
1. In the short term, short the GBPJPY till 134.
-Open short when RSI passes 70 and looks to turn direction, look to MACD for advise on when to enter short position
-Stop buy at 139
-Look to close position at 134.5
2. Long term look to buy at 134 and look to sell at either 143 or the extension of the downward trendline
-Buy at 134.5
-Stop loss at 131
-Sell order at 143 or if downward trendline is first hit
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.