FOREX Chart Of The Day: Is GBPJPY Going Long?

Hi, and welcome to this 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. It was our Blueberry Jam Trade of the Day, and we’re looking for some upside to this market because the currency heat map suggests it.

I’m trying to match up the strength and weakness with the currencies and with the daily closes. You can see down here on GBP/JPY that it’s bullish and that we had a bullish close yesterday. That gives me an idea to buy the market. So, we placed a limit order, which hasn’t triggered the high of yesterday’s candlestick with the stop-loss below the low yet.

Now, if we look at the market in more detail, we can see that the price came back into key supporting zones of these previous highs here. It’s quite a decent level if we look left and put a horizontal line on, we can see that it had multiple support and resistance points here.

If we go to the four-hour timeframe, what we’ll look for is a change in cycle. What I mean by that is for the price to start forming higher highs and higher lows after forming lower lows and lower highs.

So, the price came into this level, and it double-bottomed. Now, we’re looking for a break of this neckline here. If the market can break that neckline, pull back, and continue to the upside, that’s going to be good for those long opportunities on this currency pair.

I like the opportunity with GBP/JPY.

The reason I’ve got these lines here is to show you how you can look for those key opportunities in-line with the trend. So, you’ve got the moment. The market moves to the downside. Typically, in these moments, you’ll see a trend on a lower timeframe.

If I look at that four-hour to 15-minute ratio, you can see on the impulse moves that the price starts moving back to the downside. It starts forming those lower lows and lower highs, we get one last move up, then it takes out the highs, there.

But when we start breaking lower, we get those lower lows and lower highs, and the price retesting those structure points then continuing down.

That’s what I like to see when I’m trading this four-hour timeframe. I like to match up the lower timeframes to it. So, you can see here, the four-hour started to impulse to the upside after finding a double-bottom pattern. Now, a lot of traders would have seen a break of this low and got short. I didn’t want to do that because it’s testing that structure point, there. The four-hour closes bullish, which then represents this break in trend and forming a higher high here, then the price pulls back, retests that structure high, breaks to the upside, retests the high, and breaks to the upside.

So, that’s what you want to follow. I want to follow that trending pattern where the market starts pushing and forming higher highs and higher lows.

What we can be looking for here – since the price dropped lower and retested an area – if the price comes back in and changes cycle on the 15-minute, we can assume that that four-hour trend is changing, and we can be looking for more buying opportunities early on.

That’s what I’m going to look for on GBP/JPY. I did like this market for some potential upside in-line with our currency heat map.

Thanks for watching this video update, and I’ll catch you in the next one.

If you’re new to trading, it can be quite overwhelming. But fear not, you can try out trading GBP/JPY by opening a demo account through Blueberry Markets. When you’re in live trading, our customer support team will be there to assist with your transition.