Today I did a new video update for you.

Today I did a new video update for you.

Today I did a video update for you.  Tell me if you liked it.  Tell someone else if you didn’t.

I’d like to buy the GBP/JPY if it falls to 219 and prints a reversal pattern.  For 100 pips.  50 pip stop.  I’d even consider taking a first position at 219.00 exactly.

I’d like to sell it if it hits 241.00, in the same fashion.  Here are the medium term support and resistance levels from which this is based.  This will take days or weeks to materialize.

The USD/JPY is on its way up to the last Winnipeg line — the 200% extension of the channel itself.  This would be a fine place to start looking for a short trade.  What I’d like to see is:

1.  A bearish candle formation, like an engulfing pattern or some such other thing;
2.  Stop goes above the 200% extension;
3.  Profit target 100 pips.

Once a pair breaks out of a channel, it sometimes just can’t stay away and it goes back inside.  We usually call this a Manitoba move, after the province in Canada. 

If a pair breaks out on the upside of a rising channel, I’m even more intensely interested to see it go back inside.  Why?  Because it broke out above a rising channel, and that’s like running uphill and then, when you’re most tired at the top, you jump.  You’re going to come right back down.  You’re going to be exhausted.

Well, the USDCAD is doing that.  It also broke a trendline in doing this.  The bottom of the channel is the profit target.

If the pair rises back up and hits the 2.3500 mark, and prints a reversal pattern (a bearish reversal candle pattern like the bearish engulfing pattern, for example) I’d like to sell it for a 100 pip profit target, with a stop loss about 20 pips above the 2.3500 mark.

I’d like to buy this pair if:

1.  It hits the bottom off the ascending channel;
2.  Prints a reversal candle pattern.

I’ll target the first fibble for the profit target.  Stop out if the pair closes below the bottom of the channel, which would result in a sell trade.

This pair is a thorn in my side frequently.  It did hit the top of the channel, and did print a reversal candle, and did produce a sell trade, and did stop out when it later broke and closed above the top of the channel.  The sell trade was at 109.95, and the candle that closed above the channel and stopped out the trade, closed at 110.33, so it was about a 40 pip loss.

The close above the top of the channel produced a buy trade.  The profit target is the first Winnipeg line outside the channel.