[September 25 (Wednesday)] Analysis of GBP/JPY market and trading strategy
Hello, this is Kinugasa.
This is the trading strategy for GBP/JPY on Wednesday, September 25.
The trading strategy reflects Kinugasa's views and does not guarantee profits. Please understand that if you trade based on this and incur losses, Kinugasa cannot offer any compensation. I hope you read this with that in mind.
Also, the analysis is based on a span model and a Super Bollinger approach.
Detailed explanations are provided in the articles below, so please take a look if you like.
Now, let's take a look!
Strategy for GBP/JPY on Tuesday, September 24
Daily chart
This is the daily chart for GBP/JPY.
A delayed-span bullish signal with a buy sign illuminated indicates a buying bias.
However, considering that the previous candle failed to push to new highs and that price has fallen below the BB +1σ, it can be judged that the upward momentum has weakened.
As with yesterday,a pullback within an uptrendis occurring.
It is a moment to determine whether price will bottom out somewhere and revert to an uptrend, or continue into a downtrend.
If price can first pull back to around the BB centerline, it would make planning the subsequent strategy easier, but…
〇 Four-hour chart
This is the four-hour chart.
The delayed-span is turning bearish with a buy signal lighting up,giving an unclear directional sense.
BB is generally trending slightly downward, so selling may have a slight edge.
From around 133.900 up to the BB center band, price looks heavy, suggesting this level is worth shorting.
Conversely, if price breaks above the BB center band, you would want to cut losses on shorts. However, taking a long position at that point also feels delicate. There are important resistance levels above, so…
〇 One-hour chart
This is the one-hour chart.
The delayed-span interacts with the candlesticks, and the cloud is thin,completely range-bound.
From the daily to the hourly, there is no clear direction in any timeframe, haha.
However, even on the one-hour chart, the upside looks heavy. It is near the recent high, and around the 134.500 area where it coincides with BB +3σ, there is a setup to initiate selling. Considering the four-hour center line is a bit lower, you might also start selling at BB +2σ.
So, here is a summary of today’s strategy!
① As a premise, there is no clear directional bias at the moment. Therefore, taking no trade today is also a valid strategy!
② If you must choose a direction to enter, go short.
③ Short near 134.300 where the four-hour BB center band overlaps with the one-hour BB +2σ. Profit targets around 133.500–133.400.
I think a strategy like this would be good.
As mentioned again, GBP/JPY currently has no clear direction, so…
There is no need to push trades aggressively.
That concludes today’s GBP/JPY strategy!
