GBPJPY: Potential breakout trade / Time at Mode signal

FX:GBPJPY   British Pound / Japanese Yen
The analysis of multiple timeframes in GBPJPY             leads me to believe that we might see a bullish breakout emerge from this juncture.
If we base on the relative strength readings, obtained from my ratio analysis, pairing gold             vs each currency, we'd be biased towards a bullish trade setup here. Although rgmov doesn't signal a new 44 bar high in any timeframe, the monthly does have a recent uptrend, which turned into a lengthy sideways move, and price is emerging right from support, so this opportunity should be considered.
Check out my previous Nikkei chart, and the gbp/xau, an jpy/xau ones, as well as Tim West's own analysis on the Nikkei for more information.

The 3 targets on chart are potential reversal zones as well, the low volatility enviroment we're in makes me think we have a very big move coming!
I take this trade as a hedge against my longer term shorts in usdjpy             and my eurusd             and usdchf             longs. It's good to keep a balanced portfolio when opening and managing multiple positions, without being incoherent with our own analysis and methodology.

I'll post uptades and send broadcasts with more information, related charts and associated add on trades to my followers at collective2. Check out my profile for details. Currently offering a 15 day free trial.

Kind regards,

Ivan Labrie
Time at Mode FX
Trade active: I entered at market initially, adding if today's bar closes above the mode.
Comment: Discretionary error entry worked well here. Adding to longs on close above the mode at 184.204.
Also adding if we expand range, risking the day to turn down. Aggressive play.
Comment: On track, added to longs after we got range expansion and trailed the stop. Now at the same risk exposure, with 3x the position size.
Comment: Added again on retrace, booked some profit from addons at the high retest. Risk free, triple size position now. Letting it hit targets.
Trade closed manually: Booked profits, will reload when safe.
3:1 trade.
Looks like a good breakout! :)
I would say this is a critical juncture. The trend is bearish but there is substantial evidence of a bottom. Price has risen to the upper median parallel and is in the vicinity of prior support/resistance. We have a double bottom but I would like to see a higher low and change in the relationship between price swings and the stochastic first.
+1 Reply
If today's candle is a zoom candle, then we'd be pretty sure of the long, the new momentum high is enticing.
johan.verm IvanLabrie
I think if price breaks trough the MA 50/200 (D1) there is a good chance to climb higher to the MA 100...Good luck!