I thought I start this thread as GBP/JPY seems to offer a wide range and volatility over other pairs. Looking at the movement today, the cross bounced 300+ pips off its low. But I feel its overdone. Sell 223.85
Its been a difficult environment recently as you have to go against gut instinct. I basically compare levels of GBP/JPY for weakness/strength in gbp, jpy, equities and gold. Then make a call.
Covered -100pips loss. All trades have 100 loss and 200 profit targets. Although Unless sentiment quickly changes. Long 225.50
Trading has been tough on this pair. You have to be prepared to alter your view very quickly. My recent trade was based on the carry coming back into favour by investors wanting riskier assets. I still hold.
Strange, GBP/JPY is the easiest to harvest. With a range of 200+ pips per day how one cannot grab 10 - 30% of them daily is beyond me - but that's me. Same with AUD/JPY and CAD/JPY. BTW, basing a trade on the hope that "investors" favor the carry trade or not is not trading it's speculating/gambling. If your holding period was weeks or months I could understand but with a 100 SL your TF was hours. You were betting that "investors" were going to wake up in the morning and say "Gee, I'm feeling frisky today, fine day to get our carry trades back on"? GBP/JPY, AUD/JPY and CAD/JPY are about price action and price action alone.
Held position longer. Out at 229.20. +285 pips. I think you take a simple view Mrfrank. My view is. Interest rates down (fed implies this this week), equities up. If equities up, people are looking for looking for risk. GBP/JPY is a funding currency for risk. Hence GBP/JPY up.