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Weekly Forex Trading Commentary - Sunday 1st June 2014

GBP/JPY - Small Price Action Pin Bar at Support Pops Higher, Outside Bar from Last Week Could Play Out From Here

GBP/JPY did dip back quite far following the outside bar / false-break we discussed at 170.00. Prices actually dipped below the low of the false-break bar so may have stopped traders out if they had buy-limit orders pending still. It's usually sensible to cancel pending orders if the market does not play out in 2-3 days, and this market really too 5-6 days to dip back, so we would not recommend holding the limit order we discussed for this long. That being said, we got a small bullish pin bar on Thursday, which seems to have held into Friday's trade as prices did pip higher. From here we mat see a move back to 172.00 and ultimately 173.00 if prices can pick up some good momentum.

(click to enlarge)Click to enlarge