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GBPJPY inside bars: 9-2-10

The GBPJPY has formed 2 consecutive inside bars, indicating that this market is winding up tight for a possible strong break out move. The trend is down so we would have to favor the downside right now. However, given the fact that support sits close below near 127.65, we do not really see a large reward relative to risk.

Ideally, we would look for this inside bar setup to break higher and run into resistance near 132.00 and subsequently form a bearish price action setup. In which case we would then consider taking a short.

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Commentary:

The U.S. dollar was mixed today, rising against some currencies and falling against others. As of the New York session close, the greenback made modest gains against the British pound, Australian dollar, and Canadian dollar.

The greenback lost modest ground to the Euro, Swiss franc, Japanese yen, and New Zealand dollar.

The Dow added 50.63 points, or 0.49 percent, the S&P 500 rose 9.81 points, or 0.91 percent, and the Nasdaq added 23.17 points, or 1.06 percent.