Confessions of a Forex Trader

The GBPJPY is trading in a bullish market condition, earlier this morning the GBPJPY broke through the short term resistance level triggering a bullish MC. What is most interesting though is the weekly chart:

GBPJPY

The GBPJPY is trading near a W support level, and the next LT level is at 150.44… so what do you think? Would you hold your trade for a month for the possibility to get 900 pips??? Tricky isn’t it? Remember we are talking about the weekly chart here, and there are 1D levels in between.

What would you do?

Trade Safe

Raul Lopez
http://www.straightforex.com/

Last Wednesday I wrote about the GBPJPY, we were waiting for the pound-yen to break the short term range, and guess what?… it just broke that range:

GBPJPY

The GBPJPY broke the short term resistance level setting us up for a bullish market condition.

Here is my plan:

As long as the GBPJPY trades above 144.12 I will be looking for long trade opportunities. My next LT resistance level is at 146.65

All short trade opportunities will be ignored.

Trade Safe!
Raul Lopez

In the last weeks the JPY crosses have been trading in a pretty wide range, the GBPJPY for instance went from around 150.35 to around 139.79 to 148.20 and right now it is trading at 142.55, this is more than 2,500 in a little more than 3 weeks.  These are the swings that we need to stalk:

GBPJPY

Right now the GBPJPY is trading around the LT support level of 142.62, in the short term charts this zone accounts for: 144.02 and 142.17 (quite large short term range). So right now I’m waiting for the market to break that range before starting to look for a trade opportunity.

So here is my Trading Plan:

If the Pound-yen breaks the 144.02 ST resistance level, I will be looking for long trade opportunities.

If the GBPJPY breaks the 142.14 ST support level, I will be looking for short trade opportunities.

If it continues to trade in the ST range I will do nothing.

Trade Safe!
Raul Lopez

It appears that the market is reacting now, most pairs are trading in a clear market condition (finally after two weeks of very few opportunities) and there are good opportunities in some pairs and crosses.

However, there is one cross that continues to trade in a undefined range (the most difficult market condition to trade since we have no clear support or resistance levels), and it is the GBPJPY.

I know many traders like the GBPJPY because it moves pretty fast and the average daily range is greater than most currency pairs, but these weeks have been difficult to find any opportunity in this one, just take a look at the next chart:

GBPJPY

This one has no clear support or resistance levels, the GBPJPY stalled around 150ish, so the best thing to do here would be to wait for the market to break the range before looking for any trade.

My Trading Plan

Forget about GBPJPY

Trade Safe

Raúl López

You must think I’m crazy because I’m looking for a trading opportunity in the GBPJPY after last Friday movements. But you know, it was different in the GBPJPY, movements were clearer and it retraced exactly at long term important levels, so it is probably a good idea to look for a trading opportunity here.

Anyway, the GBPJPY was rejected from an important long term support level and now it is trading in a bullish market condition.

GBPJPY

My Trading Plan

As long as the Pound-Yen continues to trade above 150.20 I will be looking for long trading opportunities. All TP orders will be placed around the next resistance level at 153.13

All short opportunities will be ignored.

Trade Safe

Raul Lopez