Non Farm Payroll was released last session, 1 day earlier than normal to accommodate for the July 4th holiday for the USA. The impact of NFP was mild on some pairs, but no impact here on the GBPJPY daily chart.
As a result of the indecision, this market has dropped it’s third Inside Day.
A breakout is imminent here and it’s looking like the bearish pressure is on. So I am rooting for a bearish breakout, considering this market is over extended on the weekly chart from it’s 10 week rally.
We’re sitting on a support level at the moment, which is containing price from breaking lower, but if this support breaks and price starts closing below here, this market will have fully transitioned into a bearish market.
Avoiding any breakouts that occur during the Asia session, and will check in to see if it is worth placing a breakout order during London trading.
Price Breaks Down From Inside Candle Group
Finally the market did eventually break the support level which was holding price back. This support level was the ‘last defense’ for the overall up trend, now it’s been taken out – we’re completely on the bearish side of the fence now.
Notice how the market broke out in a violent fashion after the Inside Day group formed… this is very typical of this type of setup.
Now we’re just waiting for the next sell signal to occur, as the market is too over ex trended from the mean to consider selling into at the moment.
Wait to sell the rallies 🙂
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Jamal
Thank you.