USD/ZAR and GBP/JPY

A leading signal provider is very interested about GBP/JPY. According to his analysis, the pair has been moving in an upward channel and is now at the top of the channel. As the channel has been continuing for more than a month now, he thinks there is a strong potential that the pair will hold the channel. If the channel holds, he has suggested going short at 154.25. He prescribed a stop loss of 100 pips, which means 155.25. I think if I place a limit order at 150.25, there will be a 1:4 risk reward ratio.

Though I do not trade in emerging currencies, a recent signal caught my eye. I spent days observing these pairs, mostly the USD/ZAR. The signal tells that the emerging currencies have to fight with large deficits, weak growth rate, challenging capital flow and high inflation rates. For the past few months, these fragile currencies were fighting against the majors. The signal predicts that the USD/ZAR has a high potential of reversing the trend. The pair has formed a head and shoulders pattern in the 4 hour chart, with the right shoulder weakening than the left.

The pair has been testing 10.15 for several times as a support level. However, the weak right shoulder may hint the beginning of a downward rally. If the pair breaks past 10.15, short orders could be placed with stop loss at the previous swing high, 10.3510. Profit targets could be the support levels of previous months, like 9.72860 or 9.61220.

Potential Forex TradesĀ http://www.topfxandbinary.com/potential-forex-trades/

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