The market is throwing conflicting signals all over the place. I managed to squeeze around 40 pips from yesterday's GBP/USD short, but now we have double-bottomed and have once again lost direction.
Today's trade idea is a EUR/JPY short(or long).
As you can see, recent price action is suggesting further downside. BUT - the other currency pairs don't seem to be agreeing. The EUR/USD is still stuck, and can go either way. In the EUR/JPY, we have currently hit trendline support-turned-resistance, as well as the 4-hour 21 EMA, and double-topped at the 15 minute 200 EMA(at the same resistance). Now, if this resistance breaks, and price holds above it, there is a 50-odd pip long up to the hourly 200 EMA. If the resistance holds, then you can short and ride it out to see how far it goes. This may not happen until early London. Watch the EUR/USD for confirmation.Good luck - you will need it!
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