The GBPJPY daily chart has produced one of the best rangebound conditions I’ve seen in a while. . Ideally with ranging conditions you target reversal signals at the range top and bottom. This range has produced some very nice price action signals that did see some good price follow through.
While I personally don’t actively trade ranges very often, I was able to catch one of these moves. The indecision breakout trade that was discussed here:GBPJPY INDECISION CANDLE PRINTED @ RANGE TOP
Indecision Breakout Pushes Price back to Range Bottom…
After the market broke the Indecision Candle signal low, the market weakened and retested the range support containment level. There was a bullish pin bar signal a few days after this sell trade was done and dusted. But, the signal didn’t not produce my retracement entry criteria and only offered a breakout entry, so I passed.
A few war room traders did manage to catch the most recent bullish rejection candle trade from the range support level. That trade has now run it’s course as the market re-tests the range top. Will the range continue to play out? This level will need to hold if we’re to see another oscillation of this ranging behaviour.
We’re waiting to see how price reacts with this level next week. If a nice sell signals forms then we can consider short positions so keep your eyes peeled. If you would like to learn more about how to trade Forex with price action then you can visit our war room membership information page.