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GBPJPY: All Eyes on Today’s Close

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Important: I use New York close charts. Click Here to Use My Preferred Broker

The GBPJPY is once again trading above the rising wedge top we discussed last week. I first mentioned it on Tuesday and then again on Friday when buyers looked to be in trouble.

As I pointed out over the weekend, Friday’s 153.40 close put the yen cross well below the wedge top near 153.80. That meant the area should begin to serve as new resistance.

If so, what’s going on with today’s price action?

At the moment, the GBPJPY is trading well above the 154.00 handle. In fact, it’s closer to 155.00 than it is to 154.00.

Many traders would look at this and claim that the pair has broken back above 153.80/90 and is once again bullish. While that may very well be the case, it isn’t how I approach the markets.

For me, everything comes down to the daily close at 5 pm EST. This is why I vouch for New York close charts that provide five 24-hour periods.

As for the GBPJPY, today’s close will likely be a significant one. If the pair closes the day back above 153.80/90, it’s a sign that the multi-year rally is still intact. It would also nullify the wedge top to some degree.

Now, if sellers can force a close back below 153.80, it would suggest that Friday’s false break is intact. It would leave the GBPJPY rally vulnerable, and all eyes would turn to wedge support near between 151.50 and 152.00.

I’m not saying that’s what will happen. What I am saying is that nothing is confirmed one way or the other until today’s session closes at 5 pm EST.

There’s no doubt sellers have their work cut out for them. As I type this the pair has surged above last week’s high and buyers are clearly back in the driver’s seat. But the answer I’m searching for won’t materialize for another six hours.

Be aware that the BOJ is on tap during Tuesday’s session, so it may be prudent to wait for the event to pass before further consideration here.

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GBPJPY daily chart showing false break

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25 comments
Alfonso says

Nice analysis!

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Lynette Silver says

Great stuff. We wait.

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Haitham says

Haitham Asha 0796550851

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Roy says

Good advice. wait for Boj before making a decision.

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Lesley says

Thank you very much Justin. I will always take your advice that you once said that it’s all about patience in trading

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Nicky Barnes says

Since I found your website I have completely turned my view on forex around. I used to scalp, trading 40 times a week, and of course losing a lot of money in the process. Now I trade 2-3 times a week and I understand the patience in trading success.

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Saiffx says

Nice and informative article.

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sajid says

👍

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Saiffx says

But i also looking weekly ending diagonal….

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Kenneth says

GBPJPY: 153.80 has been taken out, if BOJ keeps rates unchanged that could weaken the JPY this will expose the third monthly resisitance at around 157.90.I am trying to analyse the charts using your method..am I following you correctly?

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    Justin Bennett says

    I don’t trade based on fundamentals, only technicals.

    Reply
Sydwell says

Thanks for the warning,will keep that in mind

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Don says

This is only Jan so GJ is heading to downside along with the UJ given the coorelation and the sling effect of GU which is also in over bought position.

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Vijai says

Thank you very much Justin

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Do Minh says

You are the best !

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Diana says

Justin, why do you recommend Blueberry brokers, as a rare broker to offer 5pm NY time close. I have always traded with that type of broker, mine is Pepperstone, and they have really narrow spreads.

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    Justin Bennett says

    Because I know the Managing Director, Dean Hyde, and I can vouch for him and his firm. I don’t put my name alongside any broker lightly.

    Reply
      Diana says

      One question, what are their executions like around news, like NFP? do they have a slow down?

      Reply
        Justin Bennett says

        Spreads will always widen around high-impact news, regardless of the broker. That’s just the nature of the markets.

        The best way to find out is to create a demo account.

        Reply
shaiful islam says

GBP/jpy update me

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Mohamed Ershad Pasha says

I am new new one for this….!

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    M. E. Pasha says

    Now I joined for new one…. But I don’t know what process…. And what happened….?
    Can I earn to this apps….?

    Reply
Veronica says

Thank you for the good set up Justine I learn a lot form you analysis. Do Blueberry Offer Indice and how much is minimum deposit and how much is their pips per lot, like 0.01=1 pip or 1.00=1 pips! I have grow so love for indice and am practicing and reading about them.

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Martin says

Hi Justin!, thanks a lot for your advise!, I have already created a demo in blueberry in order to test daily charts! I am long in GBP/JPY in 154.200, what would be your T/P?, around 157.900?

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