Missed opportunity review: GBP/JPY spiked 500 pips in 24 hours

It looks as though my analysis for GBP/JPY making a reversal was correct. However, my short term entry needed to be improved for me to profit on my intermediate term analysis. In particular, I should have looked at a major short term resistance line instead of an arbitrary weak resisitance line as I did when I entered the long previously. That didn't go so well as I was stopped out soon afterward when GBP/JPY was consolidating. In hindsight, if I'm to try for a reversal, at least wait for the price to break a strong short term resistance and then use the recent low as the stop. The preferred resistance line for GBP/JPY in this missed trade can be seen in Fig. 1, which I drew many days ago and also can be seen in my previous entry (Figure 2 on that page, the higher of the 2 lines). New Figure 2 attached below shows the bigger picture of GBP/JPY in a daily chart to see what could have perspired. My target of 148 was spot on too!

[caption id="" align="aligncenter" width="580" caption="GBP/JPY, 3-hour"][GBP/JPY, 3-hour]GBP/JPY, 3-hour[/caption] [caption id="" align="aligncenter" width="580" caption="GBP/JPY"][GBP/JPY]GBP/JPY[/caption]

Posted 15 October 2009 in forex.