GBPJPY—weekly

Taking a look at the weekly chart below, one can see that the pair has managed to break above a long-term downtrend resistance line that has had three touches. This raises the question of whether the pair is using the recent low of 125.51 to base. If the Guppy can climb and close above the 134.23 November high, the question becomes a possibility. 132.52 has been the most recent high where it ran into resistance from confluence. The real test is whether it can sustain a close above 134.23. If it can, then the potential is for a move to 137.79, 139.38/87 (confluence) and 145.98.

If it gets to 134.23, many traders, still driven by the substantive downtrend, will short. That's why a substantive close, preferably on a weekly basis, will be necessary for continued bullish movement. Still, one needs to keep in mind that this quite formidable trend line has been breached for the time being. 169.39 would be a .382 retracement of the entire move down so there's room for some good profits if it does continue up.

129.50 is the first support. Below that is 128.99, 127.50 126.73/46, and 125.55.

Here's the weekly chart:












© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

My purpose in writing this blog is to show you how one trader, me, makes trading decisions and survives while trading Forex. One of the biggest problems I had when I first started trading was trying to apply the “rules” to actual trades. Another was the psychology—limiting losses and letting profits run. If you study my blog, you’ll see how I deal with both those issues. So my writings are not trade recommendations but rather educational in purpose. You have to decide on your own approach to trading. Remember that trading is risky.









© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

My purpose in writing this blog is to show you how one trader, me, makes trading decisions and survives while trading Forex. One of the biggest problems I had when I first started trading was trying to apply the “rules” to actual trades. Another was the psychology—limiting losses and letting profits run. If you study my blog, you’ll see how I deal with both those issues. So my writings are not trade recommendations but rather educational in purpose. You have to decide on your own approach to trading. Remember that trading is risky.