I’ve been looking at GBPJPY for a while now waiting for a good setup.
As shown here in the weekly chart the sellers have been trying to push the price under the support line (marked in white). This resulted in a so called “fail” from the sellers and price ran right through the resistance area without (marked in red)
When we look at the daily chart we see that price has been down to test the former resistance level (marked in blue). If it breaks down through this level again I’m no longer sure about the strenght of the GBP against JPY and I’ll exit the trade with minus 1 R.
My target is marked with a purple line. If the target is hit it gives me a Reward-to-risk on 5:1 which is more than I normally aim for. I know my self well enough to say that I’ll probably take some of my profit off the table before we hit my target if everything is moving my way.
Remember always to do your own analysis too.