GBP/JPY is the biggest mover in the forex market today, down 135 pips after hitting a two-and-a-half year high yesterday.
When a chart goes parapolic, there are only two trades — buying and on the sidelines.
There are so many pitfalls in trading a chart like this. If you’re long, you have to hold on for dear life but if you’re on the sidelines you have to be patient, even if you miss the next move.
The trend is still higher even if it falls all the way to 133.00 and that would be the ideal place to buy. It might not get there so for a shorter-term trade, look for 2-3 days of consolidation and consider buying a dip below 1.40. But if it starts to fall, get out right away.