GBPJPY: 200.00 within range as pair makes a fast ascent today to 195.27 after support was built over 192.00
The daily candle chart below shows the medium term price history of the Great British Pound (GBP) versus the Japanese Yen (JPY). This currency pair is known as GBPJPY, and is trading near 195.29 and still pushing to new session highs around time of publication.
This pair was last reviewed at the end of last week in Ideas You Can Trade when 192.00 was briefly pierced. Since then the GBP strength has been a driving theme and coupled with JPY weakness has had a combined effect to lift the GBPJPY cross nearly 225 pips today.
While it's hard to tell if the steep momentum will continue from here, the pair is clearly very bullish but at the same time more volatile, and could shoot down just as fast before pushing towards 200.00. Concurrently, traders looking for a pullback could get stopped out quick if the pair continues its steep climb and surrounding the potential high-volatility related to the upcoming FOMC decision at 2pm EST today.
Below area examples of how to trade a bullish continuation or a bearish reversal:
1. BULLISH BUY ENTRY ORDER: Create a “Buy Entry Stop” @ 196.01 with a Limit to take profit @ 196.99 and a stop-loss @ 195.02 Risk/Reward Summary: Limit risk = +98 pips profit / (-98) Stop-loss risk = Gain to Loss ratio = 1.00
2. BEARISH SELL ENTRY ORDER: Create a “Sell Entry Stop” @ 191.99 with a Limit to take profit @ 191.19 and a stop-loss @ 192.71 Risk/Reward Summary: Limit risk = +80 pips profit / (-73) stop-loss risk = Gain to Loss Ratio = 1.09
Medium Term Daily Candle Chart:
Longer Term Weekly Candle Chart: