GBP/JPY Technical Analysis

Friday saw buyers almost wipe out the gains of the previous days sellers by driving the price of the GBP/JPY from 140.494 to a high of 141.805 before settling to close for the week at 141.619.

The daily and weekly charts below both continue to paint a bullish picture with the total weeks gain amounting to 2,905 pips (O:138.714, C:141.619). This move is slighty up from the previous weeks gains of 2,465 pips. 

---

"The daily and weekly charts below both continue to paint a bullish picture"

Buyers, such as I, will be happy to see a bullish close, and also the  development of a higher low, marked by the bold  "M"  on the chart to the right. For profit protection measures I continue to hold my stop at 139.000. This is the level where I expected bears to push prices back to this week. The new higher low tells me that they have not had enough power to do this yet. If they do at all remains to bee seen and as always, I eagerly await the close of the next candle.

In the meantime I continue to be bullish on the GBP/JPY. 


My current trade on this pair is, at yesterdays close, in profit to the tune of 6,004 pips from a buy order placed at 135.615 on 17 December 2012.

---

One thing I didn't do this week, and its important to comment on failings, is to regulary check my next lowest time frame.

Here on the 4H chart to the left you can see price action being rejected by the kijun sen on thursday the 3rd , this bounce was effectively another buying opportunity and my faults are:

1. I wasn't looking for it and;
2. I didn't spot it on Thursday!

---

REMEMBER: ALWAYS CHECK YOUR NEXT LOWEST TIME FRAMES!!!