GBPJPY: Resistance hit today on 192.00 last barrier to further upside of bullish trend
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 191.67 around time of publication.
This pair was last reviewed in May in Ideas You Can Trade when resistance under 190.00 was reached and described as either a break-out or reversal area. Since then the pair reversed lower before resuming the uptrend that has brought prices to briefly pierce 192.00 today.
192.00 has acted as a support area in March of 2008 when the trend was then-bearish and enabled a reversal towards 200.00 - before the pair subsequently crashed as the financial crisis still lingered. If this resistance line of 192.00 is regained and turns back into support - then a bullish continuation should follow. If 192.00 cannot be maintained - at least in the short term - then a steep pullback should follow.
Below area examples of how to trade a bullish continuation or a bearish reversal:
1. BULLISH BUY ENTRY ORDER: Create a “Buy Entry Stop” @ 192.02 with a Limit to take profit @ 193.00 and a stop-loss @ 191.04 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” @ 190.89 with a Limit to take profit @ 190.01 and a stop-loss @ 191.69 Risk/Reward Summary: Limit risk = 88 pips profit / (-80) stop-loss risk = Gain to Loss Ratio = 1.10
Medium Term Daily Candle Chart: