GBPJPY: Trading in a short term range
Looks like the GBPJPY is trading in a short term range in between 147.41 and 149.04, it’s a fairly wide range, but we’ve got to remember that we are talking about the GBPJPY, probably the cross that moves the most.
What is more interesting is that the short term range is near a long term resistance level (blue line), so we need to wait for the market to break that range before we start to look for a trading opportunity.
Here is my Trading Plan:
If the market breaks the short term resistance level, that would put the GBPJPY in a bullish market condition, so I will look for long trading opportunities. All take profit orders will be placed below the next long term resistance level around 152.38.
If the market breaks the short term support level, it would be a bearish market condition, so I will look only for short trading opportunities. All take profit orders will be placed above the next long term support level around 143.62