Dear Successful Traders
The trade from yesterday (DAX) is performing as expected. The price has gone down to the 9800 area and then reversed up, then down again closing at 9866. The candle that formed after today is a long-legged doji, which is a sign of hesitation. For me, that is just a small break before further gains. I am leaving my long positions in this security open and am moving forward to today’s signal.
Today’s trading idea is coming from a pair, which I haven’t covered recently- GBP/JPY. All Japanese Yen pairs have been quite volatile lately. GBP/JPY has retraced around 1000 pips since it reached a peak and now is showing some signs of renewed buying interest. The pair found support at the level of 178.00, where is located the major support level. After selling briefly in the morning, in the afternoon session, all of the short positions have been covered and new buyers emerged to push the price back up to almost 179.00.
GBP/JPY ended the day with a bearish rejection. The candle that formed after this rejection was a pin bar. So, what do you think my successful traders a pin bar on a support level means- exactly- a long trading signal.
Therefore, taking into consideration the environment, I will be looking to go long this pair around the level of 178.25. My stop would be placed just under 176.80. My primary target is the level of 181.00. Then, it all comes down to price action. If we have a favorable setup, we can aim at 184.00 and then even higher.