【FX Full-time Trader Cat’s Pound/Yen Trade Commentary】

This is the last pound-yen of March.

First, the daily chart.

Although it bounced at +1 sigma, it recovered and formed a lower shadow. The angle of the middle band has softened, and the pink moving average is trending upward. The lower band has closed as well, losing momentum and increasing the tendency toward a range. Nevertheless, it maintains high volatility within the 3-sigma range.

This is the 4-hour chart.

It is edging upward. Although the angle is gradual, the middle band is rising, RSI is above 50 indicating bullishness, and the opposite band has closed with no momentum.

In this case, several scenarios are possible. For example, a false breakout to the upside followed by a sharp decline, or a false move to the downside with a sharp rebound; of course, movement from cruising conditions is also possible, so prepare for as many scenarios as possible and respond to facts without hesitation.