Paper trade: Stopped out GBP/JPY @ 141.70 (-116.10 pips)

Just got back from a long weekend and found that my GBP/JPY long is stopped out for a loss of -$40.63. It looks like the resistance is holding up from the looks of Figure 1. This setup is toasted for now. GBP/JPY 140.00 – 143.00 is the range for the time being. However, I still think 141.70 is an important pivot. I’ll need to wait and see which way does it go though.

On the other hand, my EUR/JPY long is doing well and I’m still riding it. EUR/JPY broke through a previous resistance at 131.50 and shot through 132.00. I have moved my stop up to 131.50 to lock in some profit.

GBP/JPY, 3-hour

Paper trade: 50% long GBP/JPY in @ 142.861, stop 141.16

The strength in my EUR/JPY long gave me confidence in entering this GBP/JPY long trade. I entered on market at 142.861 last night with a 50% position size. The 141.00 support seems to be holding so far, see Fig. 1. Also the RSI have been way oversold (best in my basket of pairs) and it has now broken above the RSI 30 line (Fig. 1).

In the short term, GBP/JPY broke a resistance line at 142.60 when I entered this position. However, it has since retraced back below it to a support from the day before. So there’s no short-term confirmation yet.

Position size: 50%

Entry: 142.861, above short term resistance

Stop: 141.00, below congestion zone of last couple of days

Target: 144.00 and then 148.00

Reward / Risk = 514 / 186 = 2.76 < 3… I’m moving my stop tighter to 141.16, right at the bottom of the congestion range.

new R/R = 514 / 170 = 3

GBP/JPY

GBP/JPY, 3-hour