It has been a while since I shared with you a trading analysis.
Last time I wrote about EURJPY.
The pair has gone down, then up and then down again since the time I wrote the article.
We have managed to pull a couple of good trades in the trading room from in the past couple of weeks.
Today, I am looking at another JPY-related pair.
GBPJPY Trading Analysis January 2021
I am looking at the GBPJPY pair today.
It looks like there is a major supply one and the pair printed a bearish engulfing pattern on the daily chart.
I will be looking for a small retracement back to the 141.50 area and possible short if I see the right price action confirmation.
Caution: I will be careful here, because there is a chance that the pair might want to test a fresh new high before going lower.
I would not be surprised to see it going to 143.00 first before going lower.
That is why, it is important to see how the price reacts to the 141.50 area first on the 4H chart.