Well folks, as the title says it seems to me that the GBP is taking a pounding in respect to the JPY and even in general with respect to other pairs. Tonight I had some fun shorting the GBP/JPY and bagging a few hundred pips easily. The fun thing is I did it using only support and resistance and boy oh boy this pair was breaking all support levels like there was no tomorrow. After some retracement to the 211.99 level it took a nice 160 pip nosedive and I rode that baby all the way down – can you say piptastic! mmmm…yummy fresh pips.
I think it is definitely safe to say that GBP/JPY is in a clear downtrend. I just wonder how low can it go before it encounters some major support. Right now it is battling with the daily support level S1.
Anyways, hope you’re all making pips and remember, accidents can happen, so play it safe and put on your stop-loss seatbelt ;)…