Trade 19 – GBP/JPY

Entry

t19gbpjpy1Daily Reference Triangle as shown: The resisting trend line practically extends and forms the LT downward trend line. The supporting trend line could extend and represent the recent formation of higher lows.

Bearish – In accordance with long term trend | Bullish – Previous resistance has turned support

A triangle for the bulls and bears to fight it out.

t19gbpjpy2Entry on 4H Price seemed to have broken down out of the triangle and forms a neat correction pattern.

Therefore, Spring + Break out upside or Break down + Pullback & Continuation

Stop orders were placed with the buy being the stop level for the short and vice versa.

One additional sell stop order due to the bearish bias thanks to the break down. This is the order that has been triggered. 2nd stop sell order as shown.

0.7% capital risked for potentially 5.3R.

Entry: 139.9 | Stop loss: 142.3 | Target Profit: 127

Psychology and emotions – For this trade, great. Plan is out for both cases of market going up or down, easy to follow.

Exit

gbpjpyupdManually closed both trades and cancelled the pending buy order. Net result: Breakeven

Apparently GBP is just as weak as the JPY. Price still have not broke out of the triangle and still consolidating. Will look to reenter again.

[1] Resisting line of triangle is that of the LT TL of the pair

[2] Support, which was a former resistance to the previous swing, is holding up very well

[3] Both bull and bears having at it with tension increasing as price range gets tighter

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