GBP/JPY Update (Fib #'s, large trend channel)

Hello Traders!

Well, well, well... I really hope some of you capitalized on the trade setup I posted last night, we had a very nice break, and it has continued its trend into today, and hopefully will do so tonight/tomorrow as well.  I would LOVE TO HEAR from any of you that made some money on that trade. Since the breakdown has continued, we want to be looking for substantial retraces for new short entries. The top boundary of that retrace should be your stop.  The EUR/JPY is continuing a similar pattern as well, and is breaking down as well, yet not as furiously as the GBP/JPY pair.  We also saw some weakness across the board in US trading, and the nightly futures continue to trend down, with the Dow Futures being -40 as of 10pm EST.

I will be posting more setups tonight as they come....I am currently looking for retraces in the GBP/JPY for re-entry from the short side. I honestly would not be surprised at all if this move gets legs and makes it all the way back to the original breakout level around 140.

00.  Putting Fibo retracements on the move from April 28th-May 10th (micro Bull move in overall Bull move from January, we are trying to catch the break-down), we see a 4hr chart double top around the 150.00 area, as well as the current break down landing exactly on the 38.2% rectracement level.  This has caused a slight bounce, and may be the counter-trend retracement we are looking for so we can get short again.  We need to break this level to move towards a likely 50%, but if the 50% goes, we can begin looking for an extended move that may get all the way back to the 100% retracement level around 140.00. Lastly, we see the larger (4hr chart) trend channel STILL VALID on the chart above.  A breakdown of the lower boundary of this channel, which is a much larger timeframe trend (more big time frame traders watching), will definitely put this pair in a position to meet the aforementioned targets, namely the 100% retrace of the entire two week move upward. Look for the break of AROUND 146.00ish for a confirming signal that more downside pressure is coming. Although you can get short on the retrace from last night's move, I personally will not be adding more to a short position until the lower channel breaks. It is entirely possible that Bulls come into defend the larger channel, so we must be vigilant.  I have posted a chart to display what I have described here.

Happy Trading!