Yesterday we saw comfort from ECB indicating that they have the set of tools to deal with whatever financial instability that may come. Market went bullish for the rest of the trading day. However, we have to still see what FED has to say and not until they come out with their statements, market may still remain bearish.
GBPJPY, 23-03-17, Asian Session by traderh on TradingView.com
Technically, my main bias remains bearish as market has maintained a lower low and lower high price pattern (day 2 and day 3) in the dailies. Coincidentally, yesterday’s high (162.10) sits on 61.8% retracement of the whole bearish leg from Wednesday. A break of that high with a close above that level may signify that the downward moment will slow down.
For today’s trade idea, I am seeing a short near 162.00 with a target of 160.00.
On a farther perspective, my bias is an overall short up to March 22. We may possibly see a reversal on March 23 where the FED comes out to relieve market stress.