Exit and Re-entry Strategy for GBP/JPY

Wed, Oct 20 2010, 15:59 GMT
by Fan Yang

CMS Forex  |  View company's profile

342c9db3-d64b-48c6-9f6f-cf4409d4819c 3

0

Tools:

Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Fibonacci Study
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Multiple Time-Frame Analysis

  Download today's video

Exit and Re-entry Strategy for GBP/JPY

1H: The GBP/JPY behaved as expected since our last update on the GBP/JPY.It has hit our target at 127.77, reached 127.34. It is now showing bottoming action with a double bottom. If the price action breaks above the channel and rallies past 127.65 (61.8% retracement), the market is in near-term bullish mode. Otherwise, we may still be in a downtrend if the RSI fails to break above 60, and price action stays below the 128.65 pivot.We can develop a negative reversal (higher RSI high, lower price high), which suggests further bearish attempt. It should be noted that in the daily chart, we are near an important support, so the chances of a correction is high.It is probably prudent to strategize and exit-re-entry around 128.50 area if the bullish price action. Use the previous swing, the one before that, or even the average of the previous 2 swings as your next swing projection, which should target somewhere around 126.50.If the market breaks above the 61.8% retracement level, the market is ranging to bullish in the short-term, so a bearish swing to follow should not be expected to break below the current bottom around 127.50.

1H: The 15-min RSI shows the market no longer in the bearish range (RSI broke above 60). If the market is still bearish in the short-term, we may find an opportunity to jump back on the down trend when the market is overbought in the near-term. If the 15-min RSI rises above 70, preferably with bullish candles lower than the ATR.Price action as expected in the 1H chart should not break above 128.60, and we see the 200-period SMA residing around 128.50 now in the 15min chart.A break above 128.60 should reduce your confidence in re-entry in the short-term.Published on  Wed, Oct 20 2010, 16:06 GMT

©2004 Globicus International, Inc. and Capital Market Services, L.L.C. This report is intended solely for distribution to customers of Capital Market Services, L.L.C. Any information in this report is based on data obtained from sources considered to be reliable, but no representations or guarantees are made by Capital Market Services, L.L.C. with regard to the accuracy of the data. The opinions and estimates contained herein constitute our best judgment at this date and time, and are subject to change without notice. Capital Market Services, L.L.C. accepts no responsibility or liability whatsoever for any expense, loss or damages arising out of, or in any way connected with, the use of all or any part of this report. No part of this report may be reproduced or distributed in any manner without the permission of Globicus International, Inc. 342c9db3-d64b-48c6-9f6f-cf4409d4819c 3

0

Currency Majors Technical Analysis by Mataf.net
Wed, Oct 20 2010, 11:50 GMT

Today's Trading Signals by Financial Trend Analysis
Wed, Oct 20 2010, 09:22 GMT

EUR/GBP, USD/CAD, GBP/JPY Technicals by www.deltastock.com
Wed, Oct 20 2010, 08:17 GMT

Silver has rejected from a new swing of 24.892 by MIG Bank
Wed, Oct 20 2010, 08:14 GMT

EUR: Dropping rapidly below the 9-day moving average by Mizuho Corporate Bank
Wed, Oct 20 2010, 06:35 GMT

gbpjpy

[ View All ] Forex: GBP/JPY downtrend reversal capped by 128.50
FXstreet.com | Wed, Oct 20 2010, 23:51 GMT

Forex: USD/JPY back above 81.00
FXstreet.com | Wed, Oct 20 2010, 19:30 GMT

Forex: GBP/USD rises to 1.5800 on positive US markets
FXstreet.com | Wed, Oct 20 2010, 14:02 GMT

Forex: GBP/JPY recovers from brief dip to 127.40
FXstreet.com | Wed, Oct 20 2010, 09:14 GMT

Forex: GBP/JPY – Pound hits fresh 5-month low
FXstreet.com | Wed, Oct 20 2010, 00:25 GMT

gbpjpy

[ View All ] The Advisor Weblog » Majors’ sentiment for today
Tue, Oct 19 2010, 10:43 GMT

The Advisor Weblog » Majors’ sentiment for today
Mon, Oct 18 2010, 13:11 GMT

The Samurai Trader » Weekly Reports
Mon, Oct 18 2010, 09:36 GMT

The Advisor Weblog » Majors’ sentiment for today
Fri, Oct 15 2010, 11:00 GMT

The Samurai Trader » New Updates
Fri, Oct 15 2010, 09:41 GMT

gbpjpy

[ View All ] Tabs.Init('idNews_52164429-b685-4c08-b390-923281724fba','idEBlogs_52164429-b685-4c08-b390-923281724fba')Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.

Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

* GFT is a sponsor of FXstreet.com for advertisement purposes only. GFT does not endorse any other products, services, or companies represented on FXstreet.com. The views of FXstreet.com and all other parties contained therein are not necessarily those of GFT, and GFT makes no warranty as to the accuracy of information provided.

©2010 "FXstreet.com. The Forex Market" All Rights Reserved.

View the original article here