GBPJPY, Daily
The third week of June has got off to a very volatile start as markets rush to risk averse safe havens. The JPY, CHF, Gold and Government Bonds continue their appeal as money flows from Equities, (Japans Nikkei 225 closed down 3.51% today), Oil and the GBP.
USDJPY traded has low as 105.74, before recovering the 106.00 handle today. The Daily support at 106.25 has been broken this morning and a close today below this level today will trigger a SHORT position with a Target 1 of 105.50.
Last week we took 200+ pips on the GBPJPY as it rebounded up from 154.30 which we identified on Monday (June 6th). On Friday this level was breached and broken and triggered a sell on at the close at 152.43. Target 1 at the recent low of 151.78 (again identified Monday 6th) this has been completed this morning for a net gain of 65 pips. The pair continue to look weak and has traded as low as 150.08 today. The Monthly support is at 148.80, 145.15 and 140.20 from 2013 and is likely to be tested with a Brexit vote or indeed a very close vote in the UK EU Referendum next week .
Trading on the Daily time frame allows for Target and Entry levels to be set without the “noise” of the intra-day moves, and although we have “missed” the larger moves trading this way, the benefit is that you do not enter a market too soon. Patience is a skill that all successful traders practice every time they open a trade.
Janne Muta
Chief Market Analyst
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About Janne Muta, HotForex’s Chief Market Analyst
Janne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.
Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.
“My mission is to help you to become a confident and successful trader”
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