GBPJPY Technical Analysis January 19/2017
GBPJPY 4 Hour Bullish Pattern : In the chart below a Bullish Pattern (Red) buy signal has already been triggered at the BC 0.50% Fib. level and price has since bounced higher. We are expecting for the pair to continue higher and break above the descending trend line signalling that a new cycle to the upside has begun and also signalling that the bearish cycle starting from December 15/2016 has possibly terminated. If a new upside trend has started it is possible GBPJPY can push higher towards the 157.00 level.
GBPJPY 1 Hour Elliott Wave Analysis : In the chart below we can clearly see a 5 wave impulse move up starting from the wave ((B)) 136.42 low. It’s possible the wave ((i)) cycle has terminated and we can now expect a correction lower. As long as price stays above the 136.42 invalidation level we expect the pair to continue higher after the wave ((ii)) cycle terminates.
GBPJPY 1 Hour Buy/Long Setup : Traders have 2 buy scenarios that they can take. In the chart below aggressive traders can wait for the pullback/retrace to the Green Box to enter LONGS and conservative traders can wait for a momentum price action break-out above the wave ((i)) high to enter LONGS after the wave ((ii)) has found a bottom. Which ever scenario both have the same stop loss at the wave ((B)) low. The 50, 100, 200 moving averages are used only for the purpose to acknowledge that a trend change can be possibly occurring. Price above or below these moving averages usually show which side the market is trending. Watch for price to stay above these moving averages and break above the descending trend line for confirmation that the upside trend has begun.
Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade. Hope you enjoyed this article and follow me on Twitter > @AidanFX if you have any questions
*** Always use proper risk/money management according to your account size ***
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