Europe, except for probably Estonia, had a day off on Monday, celebrating the Easter Sunday, but the market on Monday brought two pretty good trading signals for new deals. The first one appeared in the morning European time, the second one ta the end of the day, but both were confirmed only at the end of American session.
In chronological order the first signal was the signal to sell the USDJPY pair. The pair quotations broke down the level of support of 94.000 in the Asian session and descended, without trying to make an attempt to rehabilitate oneself.
USDJPY pair has not been successful at showing a decent growth during the last two months while trading in the diapason. However, the ascending trend is still the main trading idea, but now it is more urgent to trade in short with close stops.
If it is not clear on USDJPY whether there is a signal for deployment of the main trend or not yet, the GBPUSD pair had a signal on Monday for deployment of the descending trend from the beginning of the year. (Many expected this process earlier, but the market is a market). The signal for deployment has been formed with breaking down the level of resistance of 1.5200 and forming the graphic figure, reminding inverted figure of “head-shoulders”.
Certainly there is a possibility that a breakdown on Monday will be leveled in the following days and the signal will be fake, however, it is not the first attempt of GBPUSD pair to break down through the level of 1.5200, and it is possible to think that the bulls will not miss this moment.
It is better to wait for the trading to end on Tuesday, but now the situation is good for entering the position with low risk (the stop can be installed slightly lower than 1.5200). Thus, it is possible to buy with little volume and then continue after a confirmation.Social button for Joomla