Good day folks...
It's a very quite day since it's holiday in Japan, but Europe is about to open in one hour so let's take a look at GBP/JPY.
We can see the price is currently held at the low 185.927, we of course don't know what will happen next so our job is to monitor the price movement closely.
If the market players decide to bring the price up then there's possibility it might retest the previous high at 188.25, in this situation we can buy as close to 185.92 as possible with stop loss below it, preferably about 10-20% of the average daily range or 25-50 pips below 185.92. We can set the intitial target around 188.25, although I personally prefer shorter target about half the distance. Of course we can aim higher target if 188.25 is broken.
Second scenario, if the market players decide to break 185.92 and bring the price lower then we can sell as close to 185.92 as possible with stop loss 25-50 pips above it and target area is 184.22-183.88 or higher if you prefer. Or lower if 183.88 is broken.
Adjust our size accordingly, and don't forget to lock in some profit to guarantee winning when the price is moving in our direction. Hope this helps, good luck and have a nice profitable trade :)
