Be careful entering positions on the gbp/jpy which are longer than a week.
There is a strong zone of support around 120 lvls on the higher time frames.
For day traders you do have a small chance to short till 120, after which you can expect some kind of volatility. The meat of the move will happen around GBP septermber CPI numbers tomorrow.
On the weekly timeframe there is a divergence of price and momentum, which is why there is also a strong possibility of a bounce up once prices goes down to 120. If there is a clean bounce off the 120 along with a follow through in the price and volatility for a few days after the bounce, I will look to enter a week long Buy position in GBP/JPY once price moves above 136 and the patterns at that time support a buyers sentiment.
If the support at 120 is broken and I see follow through for the next 2 days, I'll look to enter short positions on the pullbacks as price legs down.
There is a strong zone of support around 120 lvls on the higher time frames.
For day traders you do have a small chance to short till 120, after which you can expect some kind of volatility. The meat of the move will happen around GBP septermber CPI numbers tomorrow.
On the weekly timeframe there is a divergence of price and momentum, which is why there is also a strong possibility of a bounce up once prices goes down to 120. If there is a clean bounce off the 120 along with a follow through in the price and volatility for a few days after the bounce, I will look to enter a week long Buy position in GBP/JPY once price moves above 136 and the patterns at that time support a buyers sentiment.
If the support at 120 is broken and I see follow through for the next 2 days, I'll look to enter short positions on the pullbacks as price legs down.
