"The market can stay irrational longer than you can stay solvent" and this aphorism is more true than ever if you look at GBP/JPY. Since mid April this market has gone in straight line for 10 consecutive weeks posting the longest weekly green run since 1995. We didn't had 10 green weekly candle since 1995 when the yen hit a peak of under 80 yen per dollar. Taking in consideration this long stretch and the fact that this pair looked extreme overbought I was expecting to see some retracement as it was unrealistic for it go go much more higher.

Over the past week I tried 4 times to go short but it refused to move lower and instead consolidating after initially we had a blow out top, or at least that's how it looked like. The pair continued to move in consolidation until Friday when we had a modest decline. I had to be willing to accept that the market is not going to give much ground and take the profits. In all previous cases I was either stopped out at small profit or small loss because I decided to play it very defensively not willing to give it room to move because this market is really crazy, you just can't know what will happen next.


Best Regards,
Daytrader21