GBPJPY Ahead of Non Farm Payroll
GBPJPY, aka The Dragon, is holding below its current resistance lines following a modest short covering rally today which kicked off ahead of the London session.
To do any serious technical damage to the current down trend we would need to see a daily close above the Weekly Central Pivot at 153.38. Should we see a surprise on the upside for tomorrow’s non-farm payroll figures then weekly R1 at 155.68 is not an unreasonable target, with the 50% retracement level of the current 1-month down-move just above that.
If the pattern in place above the market now proves to be a double-top it would give us a downside target of approx. 132.00
Jay Norris
www.trading-u.com
jnorris@brewerinvestmentgroup.com
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It is really good to be reminded of potential patterns like Double-Tops (or even the opposite.ie. Double Bottoms). This forsight helps a trader get ready to act! And in case a Double Top formation does NOT occur, then at least we know where we are.
Knowing targets are also a Plus.
I love the Pound Yen’s trade name “The Dragon”. I guess it has fire in it’s mouth for ya if you trade it well, and a hard whip of it’s tail if u get it wrong!
Cheers (Ascot, UK)