I felt that the GBPJPY was a perfect pair to discuss in this weekends video due to the fact that I was able to demonstrate multiple forms of technical analysis & show how they can be used together in order to find a high probability trading opportunity.
Recently this pair has been…wait for it…dropping like it’s hot (so lame) due to a more dovish than expected tone on monetary policy from the Bank of England and recent strength in the safe haven Yen due to the threat of a potential conflict between the U.S. and North Korea. We did end up seeing a little relief to close out last weeks trading but I see no reason why this pair can’t continue to fall.
The prediction demonstrated on the chart has price creating an AB=CD pattern (complex pullback) into previous structure support which may potentially act as resistance. At this level we also have confluence between our 1.618 Fibonacci Extension & our 61.8 Fibonacci Retracement , which are the Golden and Inverse Golden Means of Fibonacci Ratios.
We’ve had good trades in the past at this 142.50’s level and I will once again have my eyes glued to this price as the week goes on.
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