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Contributors Top Trade Idea For January 26th and 27th, 2014 – GBP/JPY

vinsonThis week could see the markets opening to various news revolving the FOMC meeting announcement, weakening emerging markets, the Chinese economic slowdown as well rumors on BOE’s decision of not hiking up rates. What a packed week will it be for economic events, Central banks decisions and some sense of trend bubbles bursting and will it be an equally eventful week for us traders in benefiting from these moves in pips from the markets ?

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Last week, UK’s unemployment rate was reported to have reached 7% but BOE’s governor Mark Carney emphasized that Britain’s economy maybe in need of more time to strengthen further and before taking any further decisions or taking any actions in reference to hiking up the current rates. In saying that about the UK’s current state, I thought it would be a little interesting to look at GBP/JPY despite it being the ‘ twisted sisters’ as most would call the pair meant as one of the riskiest pairs to trade.

However, as of last week, the GBP/JPY seen to signal a near completion of the ‘M’ pattern on the daily chart. The C to D leg is still progressing so one could still choose to trade a sell and taking profit at between the 167.18 to 164.99 level which also marks the Price Reversal Zone (PRZ) before seeing prices reversing upwards. Once the M pattern is thought to have completed, an ideal entry for a buy would be at the 168.10 area with take profit levels be between the 169.59 to 171.15 area.

Happy Pipping !

Kenny Simon

About Kenny Simon

kennysimonKenny Simon is Head of FX Training and the Asian Markets at Vinson Financials (https://www.vinsonfinancials.com). He is a contributor for the Educational and Technical Analysis section of several reputable websites. Being a fan of the wonders of nature, he  believes that trading in-harmony with the market’s natural ebb and flow could potentially increase one’s success in obtaining Low Risk, High Probability Trades. Besides the technical aspects of his analysis, Kenny emphasizes the importance of understanding and applying Fundamental Analysis, Money & Emotions Management into one’s approach to trading the markets.

 

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