GBPJPY: Waiting for further confirmation
In the last weeks the GBPJPY has been trading smoothly in between long term support and resistance levels, making it easy to find trades in between those levels. Right now, it is trading in a range in between 143.86 and 140.77, take a look at the next chart:
We need to wait for the short term confirmation before we start looking for a trading opportunity in the GBPJPY.
Here is my Trading Plan:
If the market breaks the 143.89 for the upside, that means that the GBPJPY broke that range for the upside and we should be looking for long trading opportunities. If this happens, I will be looking to take profits below the next long term resistance level at 148.75
If the GBPJPY breaks the 143.18 level for the downside, it means that it will continue to trade in the 4H range and only short opportunities will be in play. If this happens, I will be looking to take profits above the next long term support level at 140.77
If the market keeps trading in between 143.89 and 143.18 I will do nothing.