Tuesday, June 3, 2014

Double top for GBP/JPY

Earlier this morning, a double top formation was seen in the M1 GBP/JPY graph.

This presented a good shorting opportunity based on price action. In addition to price action, fundamentals favoured the Yen as the average cash earnings was more than forecast and prior period. Besides that, Japan`s 10 year bond auction yield increase slightly. A change in 10 year bond yields would affect a currency based on interest rate parity.

I shorted the pair at 171.486.

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