GBPJPY –> Pair is divergent and overbought. Pair at top of 3 day channel and hitting old SR Mesa line. Waiting for a clear break downward. Would be very hesitant to take a long position due to extreme overbought signals pair is showing.
UPDATE 23July08 PM – probing position put on early pre Europe closed and pair climbed stongly. Pair is still overbought and very divergent on the MACD. Redrew Channel with higher high and channel TL’s are being obeyed as of now. I still am looking for a short entry on this pair but will enter small probing positions due to the very high volatility this pair is known for. High stops need to be placed to have a chance to catch the eventual movement. Profit Target 1: 62 EMA . which is also now at the lower TL of the channel. Target profit 2: old SR line at 213.66
Second Probing Trade opened: 20:15 EDT. Still overbought, starting to fall. Placed SL above recent highest high. If Successful and break follows through, additional possitions will be added while keeping in mind conservative money management on this pair.
UPDATE 24July08 – This was a great trade overnight. Woke up to my initial profit target being hit at the 62 and 1/2 my positions already in the bank. I added another position once confirmation of breaking an existing SR line occurred. I closed the trade once it started to look like it was going to reverse. Conservatively played due to the high volatility of this pair.
Initial Trade Setup Entry:
Updated Trade Entry and Second probing entry:
Updated Trade Close – PIPS Collected!