The GBP/JPY pair is starting to head lower and it's probably because of the impending GDP estimate report due out later. This may sell the pair down in fear of a negative number. Many traders are short on this pair and are likely short from way up above. To play this pair as a short at this time would be a bit more risky with a little less reward. If I were to short it right now I would use a 100-150 pip stop and it's likely that it would get hit and I'd be taken out with a loss. So I prefer to wait for a long entry as I see more reward to risk ratio on the upside. For many the short is still in play but for those who are just entering the market the price is what it is now. Who cares about yesterday right? So if you are just coming into the market consider the long term chart and the size of movement to it's current level. HUGE! Japan's economic outlook is far worse than the U.S. and not any better than Britain's. How long will the YEN be able to hold these levels? Who knows? No-one knows for sure but I'm willing to take a chance on a long if and when it reaches my prefered entry zone near 133 / 135 area. As you can see from the chart we are getting closer by the minute
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well, i hope you're in, 1.371 now
ReplyDeleteis it too late to go long on this at this price?
No it's not too late, to go long on this GBP/JPY pair. It moves like crazy so be careful and use stops wisely. if you missed the 135 area for entry I would recommend waiting for it to return to that level or close to it. if you do go long at this current level you will want to stop it at 135 or so to avoid a major loss.
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