GBP/JPY Top Trade Idea - February 28th, 2014

The GBP/JPY shows possible signs early development momentum down by the slow stochastic ( setting 14 days) from recent downward trend and dropping the overbought zone (see arrow) . At the same time the price chart is thought to reject the blue trend line for the third time.

For the past two weeks , however , the price has been drifting on the side and a rectangle pattern begins to take shape on the daily chart . Pricing has not yet been clearly rejected the bottom of the rectangle for a second time if it is not yet fully developed. However , the fact that the moving average 20 days is to support it reasonable levelgives matter anyway.

Our strategy in this situation is to use it as a potential sale established with one of the following can be a trigger input.

Sell ​​on a clear break below the support rectangle and 20 days moving average
Sell ​​if the price goes up the resistance of the rectangle and a reject for a third time by the peak level tends to
Of course, if the price rally from here and just clearly breaks above resistance rectangle no configuration sale.