GBP/JPY Returns to Daily Resistance

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:

GBP/JPY Daily:
Click on chart to see a larger view.

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

Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, news, research, tools, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently, any person acting on it does so entirely at their own risk. The expert writers express their personal opinions and will not assume any responsibility whatsoever for the Forex account of the reader. We always aim for maximum accuracy and timeliness, and Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.

Source: Vantage FX Blog