It can be quite easy to fall into the common trap of chasing the market as it continues to oscillate between recent high and low prices, with sometimes very little logic behind these moves. However taking a step back to look at the big picture, our next trade becomes very clear.
The GBPJY has established and maintained an up trending channel over the course of many years; the 7- most recent years can be seen below. Logically we should try our best to go long? as close to support as possible. Unfortunately our trade would not have been filled in the past year and a half. However within this long term channel, we are presented with the chance to participate in smaller trends (green trend lines), always keeping the big picture in focus. If the short term price action leaves you somewhat bewildered and with an excessive amount of trading losses, perhaps it?s time to take a step back, and enjoy the view.