The Dragon Regaining Her Heat
This morning during the London session we highlighted GBPJPY — aka The Dragon — in our Live Market Exercise because we recognized it as having an attractive price pattern – lined up on it’s higher time frame trends –and thus a favorable environment for longs. The Dragon has definitely regained some of its heat, as it came down and tested our 240-minute directional line, following the British CPI release, before posting a hammer on this 15 minute chart after the release of the BOE inflation letter.
I had nearly forgotten how fast this pair can move and was reminded of that today along with the wisdom of trading in the same direction as those higher time frame trends. We look forward to seeing many more moves on behalf of this pair, and the others going forward. To the clients: see you all again dark and early tomorrow…
Jay Norris is the host of Live Market Exercise, a complimentary service for clients of Clovernest Financial Group, and the author of Mastering The Currency Market, McGraw-Hill, 2009. Jay’s second book, Mastering Trade Selection and Management, will be in book stores in May.
DISCLAIMER: Forex (off-exchange foreign currency futures and options or FX) trading involves substantial risk of loss and is not suitable for every investor. Risks include the potential that changing political/economic conditions may substantially affect the price/liquidity of a currency. Investors may lose all or more than their original investments.