USDJPY Buy Setup Profits, GBPUSD At Key Resistance | Sep 18

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USDJPY – Buy Setup Profits as Price Action Touches 108.37 & Pushes Higher
Yesterday in the daily market commentary, we marked our bullishness for the USDJPY and showed the stair stepping like price action.

We suggested buying on a pullback to 108.37 as our first intra-day support level. And in late asian trading, the pair did just that, dropping to 108.363 and then bounced ~60 pips higher, so congrats to the members who profited from this.

Looking at that 1hr chart below, the pair has started to consolidate and re-balance around the highs, forming a 1hr pin bar. However with the lows building higher, I suspect the pair will attempt to break higher soon.

I remain a buyer on pullbacks, looking to add longs at the pullback levels mentioned yesterday.


GBPUSD – Testing Major Resistance
As we mentioned in our members commentary yesterday, we suspected the GBP was more likely to rally as the price action was building up to that prior to the election.

The main reasoning behind this was the stats on Betfair, showing 84% of the bets were for a ‘No’ vote on Scottish independence, thus reflecting the likely participation of the ‘smart’ money on the No side.

Our main resistance levels mentioned were 1.6340 and 1.6440, and both those levels were tagged today as the pair pushed consistently higher. You can clearly see in the 1hr chart below how the market reacted to both levels, treating the former as an intra-day role reversal level.

For now while the votes are being collected. Traders will want to watch the 1.6440 key resistance as the cable is leaning towards forming a break above here. Upside resistance levels beyond this are 1.6500 and 1.6540.


Notable Mentions:
1) The Dow Jones Index is looking quite bullish after clearing the yearly highs. Look to be a buyer on pullbacks.

Read our Trading Quiz on Price Action Trading Pt 2 whereby we share live trades and announce the contest winners.

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