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Chart of the Day: GBP/JPY

Thursday, 20 November 2008 06:50:15 GMT

Written by Thomas Long, Power Course Instructor

The GBP/JPY is in a similar position as the GBP/USD in that the daily trend is down and the market has rallied off of the lows.

11-20 gbpjpy

This is a classic selling opportunity but these markets are taking their time to resume the move down. At this point, if you are not open to taking a small loss or two in attempting to get a good sell entry, the play would be to sell on a move down through support. Your risk may be higher, but waiting for confirmation of a trending move can lead to a higher win percentage. It is really a matter of personal preference.

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