This month's ProAct Traders “Real estate of the month” (formerly the pay your mortgage trade) idea is found in the GBPJPY pair.
02/04/19 143.20 start target= 135.86 for 734 Pips
We took the first trade on the break of 143.25. This is a good trending opportunity and the target at the bottom is 135.86 which means an opportunity for 734 Pips.
We are looking for an initial move to the S4 support @ 141.86 and then a short pullback. We are not expecting any big pullbacks, but any should be treated as additional opportunities to add. Watch for consolidation at the S5 140.41 area.There are 5 large Wide-Open Space’s (WOS) here - Don’t Miss those BIG Opportunities! Any pullback offers increased opportunity to add positions.
How to trade it? If you missed the first trade ( we did not) you will need to wait for your pullback @ the S4 area. Take your first (or second if in already) entry and use the respective risk reward ratio to start trading this currency pair. We have preplaced entry orders (sell stops) on the break of each Fib and looking to add on every barrier to the downside and any rally should be considered an area to add to the position. DO NOT TRY AND CROWD THIS PAIR WITH TIGHT STOPS. Remember the “pullback is your friend” in route so use those to add to the position. Your first trade should not come off until 135.86 but remove any add on over the weekend and on any significant bounce.
The pair typically has pullbacks in the 140 pips range, so every pullback could add an additional 140 pips to the trade with another position. Manage that Pullback by removing all but the FIRST TRADE. Currently the ATR (14 Day - Average True Range) of the currency is 140 Pips per day (which is right at its 90-day average of 135), so this might take about 2.5 weeks with pullbacks!