GBP/JPY: 1-2-3 at 123.00! – Orders Cancelled

Orders Cancelled: 2012-08-16 01:23

Thanks to some unexpectedly positive data, Guppy found solid support yesterday and advanced up the charts.

GBP/JPY 1-hour Chart

U.K. jobless claims
came in much better than anticipated, as the report showed that claims fell by 5,900 last month. It was projected that an additional 6,200 people would file for unemployment benefits. Furthermore, the unemployment rate trickled down from 8.1% to 8.0%. Boo yea, baby! I guess the Olympics did help a bit, eh?

This helped give the pound enough resilience to post new highs, and GBP/JPY eventually settled above 124.00. Unfortunately, GBP/JPY didn’t dip enough to trigger me at 123.00 and I missed the move. So much for catching a retracement!

In any case, I’ve cancelled my orders since my trade idea is invalidated. I’ll still be looking for other setups to take and if I spot any, I’ll be sure to hit y’all up!

Thanks for following everybody! Good luck trading the rest of the week!

Trade Closed: 2012-08-15 02:08

GBP/JPY 1-hour Chart

I was looking at my favorite pairs and I noticed that GBP/JPY has been on quite a rally. Now, I hate missing out on trends, so I locked my eye on this pair’s 1-hour chart and guess what I saw? 3 reasons to buy the pair at 123.00! Lemme list ’em down for you:

  1. 123.00 is a major psychological handle (MaPs).
  2. It falls right in the middle of the correction zone/Fib territory.
  3. It was a solid resistance level in the past.

With that said, I think there’s a good chance we’ll see a ton of market interest at 123.00 if and when price decides to head back down to that level.

As my buddy @RussHornForex said, there’s a solid resistance area just below 124.00, but I think if you’re only looking to go long for a day trade (as what I plan to do), things should be alright.

But what about fundamentals, Cyclopip?

Take a chill pill, bro! The way I see it, the markets don’t seem to be as risk averse as they once were, and with the yen weakening across the boards, I think there’s a decent chance that buyers can hold GBP/JPY above 123.00.

Today’s U.K. employment report and BOE meeting minutes should shake up the markets quite a bit… hopefully, enough to get my trade triggered!

Anyway, I set my orders this way:

Long GBP/JPY at 123.00, stop loss at 122.50, profit target at 124.00.

I placed my stop just below the WO and 61.8% Fib and I’m aiming for the next MaPs (124.00) for a potential return on risk of 2:1. Besides, I have a feeling price could edge above the long-term resistance level, as it has been forming higher lows. In any case, I’m only risking 0.50% of my account on this one.

So what do y’all think? Would you trade this setup?

Oh, and before I forget, I recently signed up on Google+ and I’m in dire need of friends! Add me up and let’s get a party going, Google+ style!

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  • Zheng Esther

    Hi I added you on google + looking forward to learning more about trading.

    • cyclopip

      Awesome sauce! Thanks, bud! Looking forward to trading with you. 😉

  • HalalPips

    I am with you on this is just I will short my sterling to long yen anything above 123.80 and below 124.00 and later short my yen to long sterling at 123 level..I see this pair is rallying due to dollar yen rally as sterling has been stable these few days..Thanks cyclopips!

    • cyclopip

      Thanks for dropping by, HalalPips!

      How’s your trade going? Were you able to buy?

  • P

    just followed you on G+, so when you posted this article was it trading just below 123.00? I have confused myself on the 1 hour chart…still a newbie, just learning now.

    • cyclopip

      Thanks, buddy! Added you in my circles as well. It was trading above 123.00 when I posted it. Price eventually dipped down, but not low enough to trigger my buy order, so I had to cancel it. What a pity!

      Anyway, glad to have you here!

      Good luck and happy trading.

  • trade forex

    It is just I will brief my sterling to lengthy yen anything above 123.80 and below 124.00 and later brief my yen to lengthy sterling at 123 stage..I see this couple is rallying due to money yen move as sterling has been constant these few times.