November 19, 2009
Did You Catch The Big GBP/JPY Breakout?
You may recall that a few days ago I wrote a blog post discussing why you should look out for an upcoming breakout on the GBP/JPY pair. Well today it finally did just that. Unfortunately if you are based in the US you may well have missed it because it happened early this morning (UK time), but for us British (and indeed European) traders it was an excellent trading opportunity.
Indeed in many ways this was the perfect set-up because as you can see from the 4 hour chart below the price broke downwards before retracing slightly to give you a perfect entry point.
The reason I say that is because it not only pulled back to the EMA(5), but this point was also where the EMA(200) currently resided and was also a nice round number, ie 149.00. So all of these factors ensured that this was an excellent high probability trading opportunity.
I personally went short at 148.95 and closed half the position at 148.00 and let the other half run (moving my stop loss to break-even). I was hoping it would reach 147.00 but it didn't quite make it earlier, but I'm still holding on. I've just moved my stop loss down to 148.00 so whatever happens it's a guaranteed profit.