Of the half dozen pairs on my shortlist GBP/JPY has been my favourite lately. It has an average daily range of 125 pips and an average weekly range of 320 pips – the most pips on offer of all the major pairs. I’ve heard of this pair being called “the beast”. And right now it’s at a level where I will very likely enter a short trade in the new week. Below are three different GBP/JPY charts.
The first chart below is a 1hr chart with a single MA and the RSI indicator. The MA is pointing down and has great touches whilst the RSI is showing overbought. And price resembles a rounding top with support at 122.
The next chart is a 4hr chart with 5day50% and 3wk50% lines. I’ve often used various 50% levels but only recently figured how to program the these levels onto the chart. I think the colour zones are self explanatory but my basic rule is: buy in the green, sell in the red and hold above/below. Price is in the sell zone now.
On the daily chart below we see that 126 has been strong resistance but of greater note are the aqua arrows that show regular repeating measured moves which suggests the down move is not over yet.