【9/20（Fri）】Analysis of GBP/JPY market and trade strategy
Hello, this is Kinugasa.
This is the trade strategy for GBP/JPY on Friday, 9/20, and the trade results from Thursday, 9/19.
The trade strategy reflects Kinugasa's thinking and does not guarantee profits. Please understand that even if you trade using this as a reference and incur losses, Kinugasa cannot provide any compensation, and I would be grateful if you read this with that understanding.
Also, the analysis is based on a Span Model and Super Bollinger.
Details are explained in the article below, so please take a look if you don’t mind.
Well then, let's take a look right away!
GBP/JPY Strategy for Friday, 9/20
Daily chart
This is the GBP/JPY daily chart.
After a late-session bullish cross and a buy signal,buying has been in controlin this situation has continued.
It is moving between the +2σ and +1σ bands of the BB,an upward trend at cruising speedhere.
As has been mentioned recently, from the current level, there are several major resistances above.
Therefore, upside is heavy though……
This week, we have begun to see a substantial tightening of the downside.
Yesterday’s daily candle is symbolic, forming a long lower wick and a doji.
If the price has solidified this much at a low,there could be a fair amount of upside when a new high is madeperhaps.
In that sense, a breakout long could also be part of the strategy.
Today, let’s consider both pullback buying and breakout chasing in our strategy.
〇 4-hour chart
This is the 4-hour chart. Buying pressure remains dominant here as well.
Although the bottom is solid, the upside is also heavy, forming a range.
Applied Fibonacci to the recent ascent.
The 23.6% level at 134.520 and the 38.2% level at 133.827 look to be significant supports.
In particular, 133.827 is important. It seems quite solid here, and conversely,if this level is clearly broken downward, there would be room to reconsider the bullish outlook.
〇 1-hour chart
And now, the 1-hour chart.
The 4-hour 23.6% level at 134.520 and the BB -2σ may align at a similar level.
As a pullback buy, this level would be a good target.
So, here is a summary of today’s strategy!
～For breakout targeting～
① If the prior day’s high of 135.660 is pierced to the upside, enter long.
② Take profit target at 136.000. If momentum continues, you can hold until 136.200. Once 136.200 is reached, taking profits entirely would be prudent.
③ Stop loss when price breaks below 135.660 again.
～For pullback buying～
① Against the uptrend on the daily and 4-hour charts, look for a counter-trend on the 1-hour chart.
② Enter long from 134.520 where the 1-hour BB -2σ and the 4-hour 23.6% overlap.
③ If the decline continues, 133.830 is the final defense line. If price approaches this level to the very edge, consider adding to the position or averaging down (but if it breaks below this level, be sure to cut losses).
④ Take profit when the 1-hour BB +2σ is touched.
I think a strategy like this would be good. Since the range is wide and volatility is high, you should consider keeping lot sizes smaller as a risk hedge.
That’s all for today’s GBP/JPY strategy!
