GBP/JPY Analysis 2011-04-07

There is nothing much happening on weekly chart. GJ remain in neutral position as long term bearish is weak. On daily chart, trader should take some profit as GJ reach Resistance line. GJ moves sideways for today up to this moment and trader can assume mid term trend is bullish.

However, we can see clearly GJ now move below Tenkan Sen and we can conclude that GJ in correction or retracement. A range box is drawn to see whether GJ can break the immediate support and resistance. Traders may want to use Fibo retracement number to target the price maybe at 61.8%.

Trade Idea:
Let GJ finish the retracement before setup a long entry. Two ways of entry setup are suggested.
1- Put buy stop slightly above box and stop loss slightly below box.
2- Make a long entry if trader see Tenkan Sen cross Kijun Sen.
However, we are fully responsible on how we trade. Idea above is merely suggestion.

Good luck.