GBPJPY Shaping Up for Possible Sharp Fall

Selling GBPJPY 141.02
Stop 141.27
Target 134


This pair has been ranging for quite a long time relative to the recent more trending sort of price action. When we have ranges like this, we often see big strong moves on the breakouts of them. Often this is also see in both directions, with there being a strong move one way followed by a fierce reversal and move in the opposite direction.



Our clearest high risk:reward opportunities here are selling into double top sort of moves where we can risk a little to gain a lot. Then if we see sharp moves down, and certain price reactions at key levels, we can look for buying opportunities for a possible strong spike up move. Again here we can risk very little to get a high return trade.