GBPJPY LONG IDEA
GBPJPY is poised to go higher. From a price action point of view. We have a massive pool of liquidity[Buyside] of [161.197].
With London Open, smart money has played the false turtle soup short to induce dumb money into short positions. However, they are building long positions as the price is pushed lower to be counter the move and potentially run the liquidity pool.
Confluence: Smart money had long positions from Friday's Asia Session indicated by the massive range expansion in price from [160.47]. Logic dictates that most long positions have not been liquidated yet. The run above buyside provides an opportunity for smart money to liquidate their net long positions in that liquidity pool. Expect the 0505hrsNY medium impact news play move to be in play squeezing shorts.
Most traders (net short) who have active positions from NFP news are still profitable. Smart money should pair their exits with dumb money stops and potentially squeeze higher.
I anticipate a painful squeeze higher which may proceed to the New York or London Close to take out any potential stops and smart money to begin pairing short positions in the move higher at logical levels.
As a retail trader, I'd hedge bets to the upside with easy targets with the fib targeting previous liquidity pools at [161.364].
My final draw is 162.00[a heavy area of commerce] as my final target.
With London Open, smart money has played the false turtle soup short to induce dumb money into short positions. However, they are building long positions as the price is pushed lower to be counter the move and potentially run the liquidity pool.
Confluence: Smart money had long positions from Friday's Asia Session indicated by the massive range expansion in price from [160.47]. Logic dictates that most long positions have not been liquidated yet. The run above buyside provides an opportunity for smart money to liquidate their net long positions in that liquidity pool. Expect the 0505hrsNY medium impact news play move to be in play squeezing shorts.
Most traders (net short) who have active positions from NFP news are still profitable. Smart money should pair their exits with dumb money stops and potentially squeeze higher.
I anticipate a painful squeeze higher which may proceed to the New York or London Close to take out any potential stops and smart money to begin pairing short positions in the move higher at logical levels.
As a retail trader, I'd hedge bets to the upside with easy targets with the fib targeting previous liquidity pools at [161.364].
My final draw is 162.00[a heavy area of commerce] as my final target.
Note
Runner must be closed at 1145hrsNY.Note
*liquidity pool at 161.375Note
*massive liquidity pool of 161.196Note
Asia long positions entered at 160.40Note
Correction: I failed to account that GBPJPY is actively traded in Asia and it would seek liquidity in terms of stops[Sellstops]. However, if you observe GBPUSD, the move continued through Asia and London higher.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.