FOREX Chart Of The Day: GBPJPY- Time To Go Short?
Hi guys, and welcome to this Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.
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In this video, we’re going to be answering one of your questions again, and we had a question in the YouTube comments asking if it is time to short GBP/JPY. We’re going to see the potential here and if we even want to consider selling this market.
There are grounds to look for sell, but I don’t think that it’s ready to go short just yet.
So the only thing I can really see is this sort of zone up here, around 140.80 or around 141 where we can see that price has found some resistance and support on this weekly time frame, which is why I’m thinking that we could get a rally further in GBP/JPY to the upside.
If I go then into the daily timeframe, we can actually see that the daily is in an uptrend. So, the market is forming higher highs and higher lows. So, that’s not to say that it isn’t going to drop from here. But, when the market is in a trend like this, I don’t want to be trading against that. However, it doesn’t necessarily mean that I want to be buying it aggressively either, because the price is currently at previous structure highs.
If the market had pullback down into a few areas, these would be good areas to look for the buy. So at the highs, the market will likely find a bit of resistance at this point, unless we do get some momentum today where price does break to the upside. But I don’t think that the market is ready to go short just yet, and the only way I would look for that shorting opportunity is if the price was to start forming new lows. At the moment, we’re making higher highs and higher lows the only way I’d even consider going short is if the market did break and close below that low, here. If we got that, then I’d be more inclined to look for that shorting opportunity on pullbacks on lower time frames at that point. But at the moment, the price is very much in an uptrend environment. We could still continue to the upside but that only has a small way to go before it hits that 148, 141 area. So if we look more at the 141, as its psychological number, we could see that the market could potentially rally up to that point. But the only way I would look to get short is if we were to start getting those lower lows and lowers high. Because at the end of the day, the trend is your friend and you should be looking for those trend trading opportunities as much as possible.
So, if you did want to be a short seller of GBP/JPY, another option could be looking at the four-hour trend. The four-hour trend could give you an early option into attracting opportunity. So you can see here when we had that pullback on GB Pound, it came, it retested, and it went short.. Even when it retested that high, you could have looked for a short from that point of view. It’s a little bit of a riskier strategy, but it’s still something you can look to do, and you can see that the market is struggling to push any higher. So if you were to get any four-hour lower lows here, you could look for the early shorting opportunity down into those daily lows. But that’s the only way I would consider looking to short this market. At the moment, still very much on an uptrend for me. I would want to see these daily lows being broken first, in order to be looking for that overall short trading opportunity.
So I hope this has answered your question. I hope that you found this information useful. If you did, please like and subscribe to the YouTube channel for more trading content, and I’ll speak to you again very soon.
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