GBP/JPY remains in coppy trade in downtrend, which gives us good possibilities for trade using oscillators.
GBP/JPY tendency shows downward movement with high amplitude between short-term impulsive movements, with relatively constant tendency. We know that in consolidation the best signals are given by oscillators. In this case we can use Stoch(5,3,3) or CCI(50) .
Signals from CCI(50) will be: crossing below 100 or 0 for short and crossing above -190 for long.
Stoch will give us signal when curves are crossing around level 20 for long and 80 for short.
Short signals will be stronger, since we are in a downtrend. But this tendency also allows us to take profit when signal for the opposite movement appears.
Stop loss around 80 pips above or under the entry.
Stefan D. Angelov - Head of Stocks Trading
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