GBPJPY A key level that looks interesting

GBPJPY, Daily              

GBPJPY, the longtime preferred pair of the large FX hedge funds, appeared to make a bottom last week which it has recovered from in traditional style.  The Guppy or Widow maker spiked down to 136.45 last Monday (January 16) before reversing aggressively following the UK PMs Theresa  Mays 12 point plan for Brexit speech.  The three day (3 Soldier) move up punctured the 200 DMA on Thursday (January 19) and has remained north of this key level since then. A long position was taken at 141.15 with target 1, little beyond the 14 DATR and t the 61.8 Fibonacci level  at 143.80 as this trade is with the longer term trend. Target 2 is close to the outer Bollinger band and at the psychological 146.00.  142.00 remains a key resistance level as it is also the confluence of the 20 & 50 DMA and the 50.0 Fibonacci level.  RSI and MACD are neutral, however, the Parabolic SAR reversed on January 17. has had a 100% start to 2017 with five trades achieving both Targets 1 and 2 and this sixth trade hitting target 1 for a total net gain of 1218 pips.

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Stuart Cowell

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