Today’s daily price action setup is coming from GBP/JPY. But before that, how did the daily price action setup from yesterday perform. There was a long opportunity on the USD/JPY. Initially price was heading in the right direction, but then it dipped down. Still, our long positions are not be stopped out, since the stop I have set up yesterday was not touched. At the same time, USD/JPY still looks pretty good for a raise. The long daily price action setup from yesterday is still valid.
Today’s daily price action setup is coming from another JPY pair- namely GBP/JPY. I see a bullish engulfing pattern on a major support level. The price has just bounced off nicely from the 176.00 level and is currently holding at 179.00. There were a few past rejections around this level, which indicates hesitation. This previous hesitation combined with a bullish engulfing pattern from yesterday might mean one thing- long daily price action setup.
That is why, the entry parameters for this trade are:
Long trade at 179.00 with a stop just under 176.00. The first price target is the level of 184.00. The second potential target is the level of 190.00. It depends on how price will play to, but that is something that the future will show. Let’s not forget that our aim is not to guess or anticipate, but to act upon what the market shows us!