A Few Charts At Inflection Points; GBP:JPY USD:JPY & GBP:NZD

A Few Charts At Inflection Points; GBP:JPY USD:JPY & GBP:NZD

As there’s nothing on the horizon that can be confidently deemed as imminent trades, here are a few charts showing Forex Pairs at inflection points where the market must come to a decision quickly in regards to the near term future.

GBP:JPY

Friday printed a nice daily hammer from support which also combines with the daily 20 MA (blue) and 100 MA (orange). If it wasn’t for MACD having just crossed down I’d probably already have taken this trade (as a re-entry of the previous swing long). If we can see a tight consolidation of price in this area and the fast MACD line start to curve back up, it could make for another interesting long position initially targeting a re-test of the 61.8% Fib level, followed by a run towards the 200 MA (green).

USD:JPY

Very similar to GBP:JPY in that price and MACD characteristics are almost identical. Price currently residing on the 61.8% fib retrace with all 20 MA (blue), 50 MA (green) and 100 MA (orange) all converging at an area of previous price congestion to possibly provide support for another rally. Again the key is for a tight consolidation and MACD to turn upwards before committing to a long side position:

GBP:NZD

This was discussed last weekend and current resistance put’s price at a major inflection point. With price at such strong resistance I would normally be jumping straight into short’s here but, MACD is bullish on all major time frames and my own system is presently long. It will be interesting to see how this situation resolves itself and although I’m not ready to commit to a trade here for either direction, we can be pretty confident that a great trade is nearing. How price now reacts at this resistance and how deeply it pulls back from here will give us some clues to the next direction. If we see a pull back to the 200 MA (green) and support is offered, I will be very interested in the long side for a longer term swing trade.

In the meantime, it would probably be safe to enter short for a pullback from here, but in view of my own system’s bullish bias I wont participate in the short side for the time being.

Looking through my chart list, I’d guess there will be a few things coming together to produce some nice entries towards the middle of the Week and I’ll be sure to get those detailed up here as soon as the come to fruition.

In the meantime, if I take any positions on the charts detailed here, I’ll detail it in a comment below this post.

5 Comments
  • RS2OOO
    Posted at 22:34h, 13 November

    A large spike down on GBP:NZD on tonight’s open has prompted me to take a speculative long from 2.02990

    Without doubt, this is a risky trade – buying just below resistance, but we’ll see how things look tomorrow and I’ll make a decision then whether to cut it or run it.

  • RS2OOO
    Posted at 00:30h, 14 November

    Closed the GBP:NZD long for +62 points.

    It left a gap right at the low, so I’ll leave it till that’s filled.

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