Do you remember the last time we featured THE BEAST on the blog? GBP/JPY was showing bearish price action, capped by daily resistance and then stepping down between short term levels beautifully.
A great opportunity to trade in the direction that the market wanted to move.
Well after 800 or so pips of this clean, step taking price action, GBP/JPY has quickly erased those steps and come straight back up to where we last posted:
Yep, that’s the same level. Keep in mind that if you were trading the intraday steps, you had plenty of opportunity to make a lot more than the single 1R that you potentially lost when the market came back up. Speaking to some traders who are exceptional at managing risk, I know that this was potentially a month making trade setup.
With price still well below the daily resistance zone that I’ve marked, I’m most interested in finding out if you’re still looking to short or whether the price action changed your mind. Please share your thoughts and most importantly a chart or two with @VantageFX on Twitter.
So that’s another trading week down. I hope you took advantage of some of the levels we’ve shared on the Vantage FX blog.
Best of probabilities to you!
Dane Williams – @VantageFX
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Source: Vantage FX Blog