Hi guys, and welcome to this Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.
Practice trading with a demo account
In this video, we’re going to go through GBP/JPY. I really like the opportunity on this market to trade it potentially up into this 141 area.
Now going to the weekly time frame, you can see that there’s lots of resistance and support at this level in the past and expecting the price, now it’s breaking out of this recent high, here, to extend up into that level as targets.
So, looking at the daily time frame, we can see there’s a really nice uptrend on GBP/JPY, ever since it broke through this high in June. The market has completely moved to the upside. We look to buy it around here, which hit our targets nicely, and the market has continued to the upside.
What I was looking for when we started to see these bearish candlesticks, was a little bit of a pullback into the previous structure high. But we didn’t have that. Instead, we just consolidated in that area, there, and now the market has broken to the upside. So now, we can start looking for those potential trending opportunities once again.
I do like the idea of looking for a continuation of that move into 141. We’re only 100 pips away from that, and on a JP Yen pair, that’s quite a decent or small move. We can look for a potential pullback there.
So, we’re going to look into the four-hour timeframe, what I like to do when I see these daily closes is to look at the four-hour trend.
We can see that consolidation in more detail here as well, and the market is broken out. What I’m going to do is highlight an area of support, which I expect to be tested, which is these previous four-hour highs, just through here. So what I’m going to look for is, if we get that nice daily bullish close again, to have a look for the market to pull back into this 139.54 level, then look for a long opportunity into that 141 area.
So, how will I do that? When the price pulls back into that point, I’ll go down into a lower timeframe, and I’ll look for the change in the cycle in that area of support. If the price starts trending back towards this level, look for that pattern to then look to trade to the upside.
So keep an eye on GBP/JPY. I like the idea of trading this up into 141. I want to see a retest of that 139-60 area first, and then we’ll look to go long from there.
Thanks for watching. I’ll speak to you soon.
Apply what you learned from this forex Chart of the Day in your future trades with the GBP/JPY currency pair. The good news is that you can test your trading strategy risk-free. Sign up for a free Blueberry Markets demo account by clicking here.