Bearish Crab Pattern

Bearish Crab Pattern

GBP/JPY is still bullish overall, however, it is a little
overbought on the lower time frames. If you take a look at
the RSI indicator you will notice that the bullish trend line
has been broken.

The candle on the chart which correlates
with the break of the RSI trend line is highlighted by the blue
vertical line, hence, a sustained close above 146.73/94 and
sustained support below at 146.60, would indicate that price
will go higher from the current levels, or at least this zone
could be seen as intermediate support.

A close below 146.80, which has already occurred, is your
short entry signal for the bearish crab pattern.
Alternatively, if you want to play it safe you can enter
with a close below 146.60.

Trade 1 Short (RvR ratio 2:1)
Entry: Close below 146.80/ 146.60
S/L: 147.45
T/P 1: 145.92
T/P 2: 145.49

Trade 2 Short (RvR ratio 2.65)
Entry: Close below 145.49
S/L: 145.92
T/P 3: 144.68
T/P 4: 144.35

As always, scale out your profits and adjust stop/loss to
suit your risk management profile.

Happy trading