The GBPJPY pair has been up trending on the Weekly chart since 3rd October 2016 and we can see price has touched down on the lower uptrend level a few times since then and has respected this . Most recently we have come back down to this and almost touched it today and so, we are expecting price to respect the and bounce back up to continue it's trend pattern. On the weekly chart we can also see price hit a major on 12th of December 2016 and the 8th of May 2017 and was unable to break through, therefore our target TP will be just below this level with a return of 700 pips.
As we zoom into the daily + 4H charts, there is still some momentum to move down a little further. On the last two bounces, price was at 5% and 3% oversold on the and we only dropped to these levels when price touched the and bounced up - Currently, price is 27% oversold so this would go in hand with our opinion that there is room to move down further before the bounce.
I have marked out some key levels I want to keep an eye on as we monitor this trade setup. The conservative approach would be to wait for the bounce and enter above 141.3x for confirmation, however, I may just wait for the bounce and try to get in as low as possible and then keep a close eye on it.
On the flip side, with everything that is happening fundamentally... it is highly likely that the GBP will continue to fall and we may just see this pair break the . I have marked out my potential targets for TP if we enter a sell instead of a long.
This research is for informational purposes and should not be construed as personal advice. Trading any financial market involves risk. Trading on leverage involves risk of losses greater than deposits.
Please comment below and Like if you agree with my analysis.
We're almost halfway on the profit target for this pair... I will soon be closing off 1 position and bringing the second position to Break Even. This way, I bank 350ish pip profit and let my second position run to the end :)
A total of 1,132.5 pips banked in a single trade with two positions and all in just 10 days!! This has been an amazing journey and I hope we can score some more trades like this.
For anyone that entered on this, please let me know how you got on.
Note for anyone willing to push further: I do see the opportunity for this pair to make another leg up and seal another 100 or so pips, hitting the original target and especially with the fundamentals supporting it, however, it no longer meets my requirements.