Monday, March 18, 2013

GBPJPY Price Action: Closing Price Reversal gaps down 19/03/2013

 In my last commentary on the pair, I posited that based on the setup given off at the close of trading on friday 15th March (The Closing Price Reversal Price Action Setup) that the pair now faced significant bearish pressure. However, many Traders didnt get the chance to ride down south today as a result of the huge gap given off as market opened. But during the trading day, we had a pullback closing this gap. If the pair fails to penetrate the resistance shown above once again in the coming day()s, we could be faced with a bigger selloff than experienced with the gap.

My Recommendation: Stay neutral while price stabilizes.

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