GBP/JPY - reverse for test of EMA on 4H? Play for tmr or Monday
Updated
- Wedge bottom could be playing out on the GBP/JPY on the 30 Min (also visible on 15 min):
- Downtrend is weakening as seen on the 2h chart, bulls are able to make money as well as pullbacks are becoming more significant. There is a slight overextension of the 20EMA on the Daily timeframe and shows the downtrend is becoming slightly climatic. RSI is starting to show divergence on the 15 and 30 min timeframes (although weak signals in my opinion, be really careful with such signals following aggressive downtrends. It shows that selling pressure is weakening but does not mean buyers will be the next ones to step in.)
- If wedge bottom is completed, a reversal with clear consecutive bull bars on the 5 and 15 min timeframe could open the door for a scalp at worse or a quick swing until the 4h 20 EMA (around 191.500 at time of writing).
Most importantly, this is a low probability trade, we are entering longs after two aggressive tight bear legs. Manage your risk efficiently and scale up if you do not see clear entry points. C+ setup at best.
Peace
- Downtrend is weakening as seen on the 2h chart, bulls are able to make money as well as pullbacks are becoming more significant. There is a slight overextension of the 20EMA on the Daily timeframe and shows the downtrend is becoming slightly climatic. RSI is starting to show divergence on the 15 and 30 min timeframes (although weak signals in my opinion, be really careful with such signals following aggressive downtrends. It shows that selling pressure is weakening but does not mean buyers will be the next ones to step in.)
- If wedge bottom is completed, a reversal with clear consecutive bull bars on the 5 and 15 min timeframe could open the door for a scalp at worse or a quick swing until the 4h 20 EMA (around 191.500 at time of writing).
Most importantly, this is a low probability trade, we are entering longs after two aggressive tight bear legs. Manage your risk efficiently and scale up if you do not see clear entry points. C+ setup at best.
Peace
Trade closed manually
Trade did not play out, got out with small loss
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