Last week, we discussed the pound/yen currency pair, that there was a fresh uptrend under way and that we were looking to buy on a pullback.
We are still looking for a buying opportunity on the pound/yen to trade in-line with this fresh bullish momentum. Traders can look for any weakness or a confirmation signal on the daily chart to get long, as this uptrend is likely to resume after a pullback.
Traders can watch the 21-day exponential moving average value (support) area as well as support near 1.3235 for potential buying opportunities. Notice the large bullish pin bar that formed the week before last, which was the event that caused us to start looking for buying opportunities in this pair.
Patience will be rewarded as this move higher could be the beginning of something bigger, as there is potentially 1,000 pips of upside from the 133 area into the overhead resistance up near 143.
Copyright 2016 LearnToTradeTheMarket.com
This article is commentary by an independent contributor.