GBP/JPY Trade Note
Recommendation: BUY
Current Trend: Short- and med-term up. Long-term sideways.
Strategy: Buy some at current levels, and add to it on a pullback to 149.10.
(Daily)
- The Pound/Yen has broken out above line 2, which goes back to last December. This was a very important resistance level, that is now broken.
- It is now pointing to a higher target to 157.60, based on the height of a channel/triangle formed by line 1 and part of line 2.
- One can either start buying now and add to the position on a pullback to 149.10. Or simply wait for that pullback before buying. This trade is likely to be short/med-term (i.e., weeks), rather than pure short-term (days) in duration.
- Place the initial stop-loss as a close below 146.50. Once the price trades up to 156.00 use a trailing stop as a breaking of its prior two-day low, to protect profits. (It is currently trading around 150.58).
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