GBP/JPY short term sell

GBPJPY is currently trading in oversold levels (as RSI indicates), which inclines us to believe that a recovery is due. Price has breached through Bollinger Bands, and from what we have observed in the markets, price tends to retrace back or consolidate until it gets positioned inside bollinger bands.

156.7 is the level we are waiting for in order to short GBPJPY and we are aiming for 50 pips and this target is expected to be met in the short term (within hours or up to one day).

We need to see how prices will react around our entry as that is an important level (historical resistance). If any 1h candlestick closes above that level (156.7), that is a negative sign, and the short position should be covered immediately as a close above that level will empower bulls and possibly take price up to 157 and higher levels.

Expecting a continuation of downward movement.

I guess this is short-term only because entry is 2 days late.

i stated short term for the fact that i was only going for 75 pips and its in an oversold area... but this was a good day trade for the day and also it hit the day it was posted ...

arigoldman said:

Expecting a continuation of downward movement.

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I know i should of continued in the trade . thank you