GBP/JPY weekly recap

An article by Gus    1 Comment

Hey everyone so got back to trading this week and have been really getting some great trades. If you have been keeping up with the markets you will be making a lot of pips. January has kept us going with big moves and has continued the moves we had seen back in December. The GBP/JPY has continued its decline that started well over a year ago and given us some nice spikes in the long direction.

If you guys where trading this week we saw some great spikes and news coming out that made some very good pips for us. Most of this week we had a very neutral bias that didn’t start turning into a player until Wednesday. As we see from the screen shot below the indicators that had been previously mentioned showed us a sharp down turn towards late Wednesday night. As many of you know I am not a big fan of cluttering my charts with a hundred moving averages and colors that just block you from seeing the price action.

If you look at the screen shot above you will notice how most of the week there wasn’t much action until late Monday and early Tuesday but even that turned around after 100 or so pips. The big move of the week came late on Wednesday night due to some news which came out of the UK. the drop was definitely a huge move that shook the already weak yen but was only made worse by breaking the 145.95 resistance line and actually going even further into the negative territory. Those of you who didn’t notice two big things of news came out Friday morning which I normally wouldn’t trade but the downward movement was just too great to ignore. First a speech to the Diet of Japan which was announced last minute and didn’t help the already shaken economy. On top of that the UK had retail sales numbers coming out which while where positive they where no where near the projected outcome but just a quarter of it.

Also for those who follow the 4H breakout this week shows how great it works, since it hit TP1 on the long and went all the way short past TP3, here is a screen shot of that.

This is definitely a longer post than the usual I give but I just feel like we will be expecting some very big moves coming and planning needs to being if we are going to take advantage of it. I have been very active on Twitter and the Forums so highly suggest to go over there and keep up, I normally update Twitter as I trade live. Also I will be posting a new trading video in the Videos section which can be found on the top menu bar of the site.

As for this upcoming week I do see a lot of news coming out on Tuesday which should shake the ground for the GBP and move the yen into even deeper territory than it already is. We have some big speeches coming out of the Bank of England talking about consumer confidence and credit in the country and also big news about the housing index and mortgages. These if forecast are correct will be moving the GBP higher than it is. We will have to wait and see what happens but will definitely be able to make some pips if we keep a close eye on it.

I will be working on a new video and guide but am extremely busy with other things so must wait and see when I can get it done. Again make sure to add me on my other sites like Twitter, and Facebook, I update these a lot more than my blog since it is easier to post my quick thought on matters rather than write a full blog post. And never worry about contacting me on Twitter by message since I really enjoy talking to other fellow traders.

Good Luck,

Gus FX