GBPJPY back under the microscope!

Good evening ladies and gentlemen

I hope you have all had a wonderful start to the trading week despite the inconsistent weather! As much as sunshine plays a part on our emotions, the weather should not affect our approach to trading and take us away from our TP!

So this week I thought I would follow a currency which I haven't done an update on for a while but seems to be displaying some interesting moves as of late. That would be the cross currency of the GBPJPY.

So below I have the daily and we can see that price has made a fight back to a fib breather level since the turn of the year after being in free fall for the best part of a year and a half. We can see a clear divergence on MACD with a 123786 at the RN. With the edge in our favour, price behaved as expected with those C.O.E and has since dropped crossing through the VI on its way!

RSI also behaved according and crossed below the midline. MACD is now below the midline too! Could we see higher lows to indicate further strength south? Could we see price use the VI as resistance for a further drop?

Below is the 4 hour chart which show action in a little more detail. I have marked the S and R lines where price has been going sideways. Since yesterday price has broken through the S line and the VI. Price did come back to retest the S turned R line, failed to break through and has since moved south. What are the other indicators saying? I will leave you to look at them and do your own analysis!

I will leave you with this thought "Most of the structures in our minds was given to us as a result of our social upbringing and based on choices made by other people. In other words, it was instilled in our minds, but did not originate in our minds." Are you bringing any of this "conditioning" to your trading?

Till tomorrow

Abundance is your Birth Right

Zaheer Anwari