Dynamic Trader Forex Blog FXCPS.co.uk: GBPJPY

Good Evening / Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = GBPJPY : DAY Chart (Posted Below)

New week, New cross. I hope you all enjoyed some quality time at the week end away from the markets. All work and no play makes Jack a sad man ! It is trading that presents us the opportunity to make a better life.

Lets look back at the larger time frames to see where the "Force" is coming from, do your own analysis.

First the monthly chart, a reversal candle in Feb 09 has given us a change in trend to the upside and looks like we will claw back some of that large fall over the six months since August 2008. We have RSI and Stochastic s supporting this.

The weekly chart gives the same picture and Support / Resistance lines can be drawn on the current up trend showing the trading band.

The day chart is shown below, The support / resistance lines are drawn on the chart and price has stayed with in this range testing both support and resistance on two occasions. The elipse has been surpassed and price bouncing off support did not quite make the resistance line presenting us a doji top. A further resistance line drawn from 24/09/08 high and through our doji top, seems to have capped price and is squeezing it towards support.

Will we get a break out and complete a wave 5 ?

Even though this move is bearish, it fits in the larger picture of bouncing between Support & Resistance, revisit your weekly chart to check.