When I'm looking at GBPJPY from the Daily chart we can clearly see this is in a long term uptrend.
To play to the probability I am only looking for a long position here.
These are the reasons I see a long setup"
1. PA (price action) is bumping into a huge level of support that was a previous level of resistance.
2. PA is also bumping into the 200 moving average (the red line) and will most likely add to the support level.
3. PA is quite a bit lower than the 20 period moving average which tells me it wants to snap back closer to the 20.
4. And finally, PA is running into the bottom side of a parallel uptrend.
Those major factors make me think the probabilities are in or favor for a long position.
Looks like a nice 1:3 risk/reward. TP is going a bit lower than the previous high and SL is going a bit lower than those previous lows.
To play to the probability I am only looking for a long position here.
These are the reasons I see a long setup"
1. PA (price action) is bumping into a huge level of support that was a previous level of resistance.
2. PA is also bumping into the 200 moving average (the red line) and will most likely add to the support level.
3. PA is quite a bit lower than the 20 period moving average which tells me it wants to snap back closer to the 20.
4. And finally, PA is running into the bottom side of a parallel uptrend.
Those major factors make me think the probabilities are in or favor for a long position.
Looks like a nice 1:3 risk/reward. TP is going a bit lower than the previous high and SL is going a bit lower than those previous lows.