FOREX Chart Of The Day: GBPJPY Trade Update
Hi guys, and welcome to today’s Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.
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In this video, we’re going to take a look at GBP/JPY. We’re in this position from the other day. Look at the daily timeframe; we saw this bullish pin candle off this previous structure high in line with our bias on the heat map while looking for an extension to the upside.
I’m looking to add positions on this, potentially. There was a couple of different ways you could have done that today, which I’ll go through and what I’ll potentially be looking at tomorrow.
What I typically look for is a bit of a breakdown in process. So, I always look at why I’m in a market in the first place. The ‘why’ for me is the strength and weakness table. That gives an area where I want to focus on the markets because many of my strategies are trend-based. I want to look for trending markets, and strength and weakness tables can help me identify that.
The next step is I want to look at those nice four-hour trends; I want to be trading in the four-hour trend to the upside. Looking at this, you can see, here, the markets are now trending higher. We’ve got this nice little higher high being formed hereafter breaking that high, there. The next step is to look for the four-hour to come back into an area of support and resistance and then look to buy the market whether we get a price action or a change in cycle on the 15-minute timeframe. What I’m looking for here, in particular, or what we saw today was that the market came and retested this structure area.
If I go to a 15-minute timeframe, the price gave us a nice opportunity to get involved, which we’re trending back down at this point, which is what we want to see. The market then rallies and takes out the previous structure high, which is this bullish candlestick. So, it’s pretty much the same entry as we got, a couple of days ago. You could have entered here, but with a stop loss there. It’d be about one-to-one at the minute or over one-to-one at the moment. We were looking for that market to chase to the upside. I’m looking for the same thing again if the daily closes as another bullish day.
I’ll go into that four-hour timeframe and ask myself: “Where is the trend? How can I trade this opportunity?” So, I’ll always look at those previous structure highs. If I drag this box to here next, this is the area I’ll be looking at for another long position. If the market continues up for the rest of the day, maybe overnight, we’ve seen the market come back down and test this area, then I’ll drop down into that 15-minute, then look for those changes in cycle patterns to go long.
I like the idea of adding to GBP/JPY. Suppose, we can get a pullback into this 1.36 level to take another position. But, GBP/JPY’s looking good at the moment. We do have a nice uptrend on the daily timeframe. Is that going to continue up into these weekly highs? That’s what I’m expecting to happen. Hopefully, we can break to the upside here as well, maybe pullback, and continue up through there. The GBP/JPY is looking good like this market for further upside. We’re just waiting to see how that daily closes while waiting for a four-hour retest of the structure before looking for an add-in position.
I hope you enjoyed the video. Catch you soon.
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