GBPJPY weekly swing short
Hey fellow traders! As you can see, GBPJPY has been moving parabolic these past few weeks as it had broken a weekly downtrend trendline to the upside. GBPJPY has been respecting smaller timeframe levels on the 1 hour and continues to creep up; however, I believe that there will be some downwards pressure in the zone we are in right now. GBPJPY is effectively attempting for form equal highs with the tops of the two candles we saw peaked in December 2019. The strong move into this zone of resistance along with the form of a double top and multiple gaps to be filled from this parabolic movement has me convinced that we will see some intense selling pressure here. You can see that the weekly candle is already starting to wick near those previous highs and we have seen some down movement on the 1 and 4 hour timeframes already. On the fundamental side, there is more news circulating that the new UK Covid-19 strain may actually be more lethal than we originally anticipated, so this may serve as a catalyst to push down GBP pairs. I am already in a sell position that I entered at 147.517 and will be targeting 142.338 for 518 pips in order to maintain a 1:3 risk to reward ratio. I am also looking to enter another position if GJ pushes up to 147.965 since we also see heavy rejection far to the left around that zone and my stop loss for both positions will be around 149.261. If my second position is activated I will look to either peel partials or close that position around 144.277 for around a 365 pip gain while I let the other position run to my 142.338 target. Either way, there is at the very least 300-500 pips to be gained from this play and I am willing to hold for a week or more. I believe GBPJPY has to retest the zone around 141.611 that was previous weekly resistance it broke out of, so my targets are set before that area.
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