Dear GBP/JPY Trade Followers

The USD/JPY trade from yesterday was not a success, to say the least. The resistance area at 123.500 proved to be extremely strong and buyers showed hesitance at first. Then, in the European session sellers joined the buyers-turned-sellers from the Asian session. The US session proved to be extremely volatile, bringing the price of USD/JPY even lower. Our tight stop protected us against this movement, but still was not a pleasant experience.
The reversal in USD/JPY made me look at its “close cousin”- GBP/JPY. The price action from the day is giving some fresh sell-signals. The daily candle is an inversed pin bar. This bearish rejection is shedding light on the behaviour underlying this market. I will be looking to enter in a short position at around 184.14. My stop-loss will be placed just above 185.50. My first price target is the level of 182.50. Depending on the price action, my secondary price target is the level of 180.500.

Happy Trading,

Colibri Trader