Final week of the decade

An article by Gus    1 Comment

Hey everyone well this is the final week of trading of the decade, definitely should be a nice one. While I must say that I do not see anything big movement this week given the fact that a lot of banks around the world and traders just are not active this week. But I do feel like this week deserves one last post as a goodbye. I wanted to stick to fundamentals this post and not talk about the year as a whole but instead focus on the GBP/JPY pair.Looking around at the prices the past few weeks many can notice that the pair has been pretty up and down the whole year.

The past few weeks we have been dealing with the decline that happen a few months ago which recently started hitting a ranging point. The pair has been in a downtrend since about mid 2008 when it started coming down from the 215 price range. As you can see from the screen shot below the bearish movement has continued until the start of this year when it hit a low of about 118 and has been with the bulls for the better part of the year. It wasn’t until this summer that we saw the bearish outlook and downtrend come back.

The downtrend that many of us have been riding for the last 6 months has hit what I would call a wall, it has been ranging the past month and not really picking a nice direction in which to go. This has offered some nice small trades of about 50 to 100 pips in either direction but not what I would like to see in the long run, since I have always preferred the longer trades. I do not see this ranging period being exited anytime soon and we will most likely have to wait until 2010 to see a new direction most likely by mid January we should have a new bull or bear market coming on. The good thing is that as you can see we do have a form of triangle forming which I am hoping the break provides us with where we need to go.

As my research shows and the way I will react to this is that if the GBP/JPY breaks 147.43 the price correction will continue to at least 149.15 which means we will hit a small correction but by no means does this mean the bulls are back. I do see the GBP/JPY falling more just a matter of when. By the way the price has moved and the corrections have come I assume that a break on 141.99 will confirm the new bear market and resume the fall of the GBP/JPY to a new low of 118.81 just have to be patient and wait for it.

This was a last minuted post just about some things I had noticed, just make sure to keep an eye on the news, since either way we have a high chance of making hundreds of pips. I will keep working on it and hope to get feedback from everyone.

Remember to comment on any post or go to the top right of the site and click on the contact link to send me any questions you do not want to write in public. Also stop by the videos section which will be updated regularly starting in 2010.

Thank You,

Gus Forex