U.S. markets may be out today but that doesn’t mean we can’t see explosive price action before the week ends!
Are you also seeing these reversal opportunities?
GBP/JPY: 1-hour100 SMA just crossing above the 200 SMA! A quick check of the chart shows that crossovers worked the last three times it happened on the 1-hour chart.
Buying at the earliest signs of bullish momentum is your best bet if you believe that the pound is about to see an upswing against the yen. The 134.50 previous highs or 135.00 and 136.00 areas of interest look legit as initial targets.
I spy with my eye a potential inverse head and shoulders in the making!The chart pattern hasn’t quite completed its second “shoulder,” though, so you’ll want to take a chill pill before you price in any reversal.
Buying at a shoulder support or a break above the 1.1820 “neckline” would make for good trades if the pound sees sustained upswing against the franc.
Not convinced that the pound is heading higher? You can also short at current levels and place your stops just above the neckline or 100 SMA if you’d rather trade a trip down to June’s lows.