Sophia Todorova has a background in teaching and psychology, and as such relishes the idea of assisting new traders on their journey to Forex trading success. Technical Analysis is her passion. The charts speak, and she listens.
At first glance, the Gbpjpy chart appears to be a choppy mess. However, a closer look will show that the pair has gradually been making higher lows, with 133.00 resistance holding for the most part, as spikes into that region result in pull-backs. The higher lows being made is of significance because this is often a first clue that points to a breakout. Since closing outside of the weekly down trendline into the buy zone, a further channel has been in play (see lines drawn in pink on chart below). The action can be seen in more detail on the daily timeframe. The first full close above the channel occurred five days ago, and we have seen a pullback to retest the resistance line at 131.50s before bouncing back towards the highs. I am currently holding some longs from the retest and will be looking for opportunities to add to this trade. What I am looking for is a breach of 133.00 resistance to confirm the breakout, and then will attempt to add on pullbacks once the uptrend is established. I am looking forward to some great trading opportunities.
My outlook is based on a long-term perspective, based purely on technical analysis. Potential target areas are: 134.00, 137.00, and 144.00.
Thanks for your continued support in reading these articles. have a pip-full day! 🙂
Winner’s Edge Trading, as seen on: