GBP/JPY: Possible bearish bat
Possible bearish bat could get us to the trendline below and possibly further down to a possible S/R zone.
It's possible that we will see some ranging PA between 2 possible S/R zones.
Advantage would be the fact that we can add a third target to the short trade, in the hopes that the possible support zone below acts as a magnet for PA.
Disadvantage is that SL needs to be wide enough so that it is above that possible resistance zone above.
I would consider placing SL above 189 round level but R/R would be poorer of course.
I might add shorts at that upper S/R zone after confirmation.
For more certainty one could consider not trading the bat but only a possible bounce off that upper S/R zone.
Possible targets as in the chart:
- TP1: 38.2% of possible bat CD
- TP2: 61.8% of possible bat CD
- TP3: just above the possible S/R zone below
It's possible that we will see some ranging PA between 2 possible S/R zones.
Advantage would be the fact that we can add a third target to the short trade, in the hopes that the possible support zone below acts as a magnet for PA.
Disadvantage is that SL needs to be wide enough so that it is above that possible resistance zone above.
I would consider placing SL above 189 round level but R/R would be poorer of course.
I might add shorts at that upper S/R zone after confirmation.
For more certainty one could consider not trading the bat but only a possible bounce off that upper S/R zone.
Possible targets as in the chart:
- TP1: 38.2% of possible bat CD
- TP2: 61.8% of possible bat CD
- TP3: just above the possible S/R zone below
Kommentar:
TP1 and TP2 reached, letting it ride for TP3.
