No Trade: Simple GBP/JPY Retracement

No dice! I’m backing out from taking this short GBP/JPY setup because reversal candlesticks didn’t form around my sell area. As I’ve mentioned in my trade idea blog post, I planned on being extra careful with this one, knowing how the upcoming EU referendum could spur additional volatility.

As you can see from the pair’s 4-hour chart below, price is still hovering around the area of interest at the top WATR and 50% Fibonacci retracement level. But with Brexit polls showing mixed results and narrow leads for both camps, I’m thinking the vote could really come down to the wire and bring a whole lotta jitters for pound pairs.

GBP/JPY 4-hour Forex Chart

GBP/JPY 4-hour Forex Chart

Because of that, I’m gonna sit on my monster hands for now and refrain from taking any new setups until the official results are announced. Some might say I’m being too cautious but I really don’t want to deal with a potential SNB shocker-like scenario. My one eye might pop out from all the anxiety!

If you’re planning on trading the EU referendum or still making up your mind, don’t forget to check my buddy Forex Gump’s blog post on 5 Things to Remember When Trading the Brexit Vote and Dr. Pipslow’s guide on How to Deal with Black Swan Events. Care to share your game plan for the next couple of days?

As always, don’t risk more than 1% of your account on a single trade and make sure you read our risk disclosure if you’re thinking of taking the same setups!

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