GBP/JPY is Ready to Retrace – A Quick Sell Signal
Arslan Butt • 1 min read
What’s up, traders.
Finally, the market is exhibiting some action after a boring week. The British Pound held strong today after experiencing “modest gains” earlier this week. Investors triggered the bullish trend a week after Prime Minister Theresa May’s Brexit deal was voted down in parliament.
On the other side, the Japanese Yen also remains weak on the back of dovish monetary policy from the Bank of Japan.
We just spotted a pretty cool trade setup in GBP/JPY and it may offer us quick 30/40 pips on the US open. Take a quick look:
- The GBP/JPY has entered the overbought zone on the 4 – hour chart. It’s a bearish signal.
- The Japanese cross has formed a doji pattern near the intraday high level of 143.500.
- The pair is likely to take a bearish turn to complete retracement. Consider monitoring 142.700 (23.6% Fibo Level) and 142.300 (38.2% Fibo Level).
So, we have opened a sell signal at 143 with a stop above 143.450 and take profit at 142.700.