[Sept 26 (Thu)] Analysis of GBP/JPY market and trade strategy
Hello, this is Kinugasa.
This is the trading strategy for GBP/JPY on Thursday, 9/26.
The trading strategy reflects Kinugasa's thinking and does not guarantee profits. Please understand that Kinugasa cannot provide any compensation if losses occur from trading based on this as a reference, and I would be grateful if you read it with that in mind.
Also, the analysis is based on the Span Model and Super Bollinger Bands.
Details are explained in the article below, so please take a look if you like.
Now, let's take a look right away!
GBP/JPY Strategy for Thursday, 9/26
Daily chart
This is the GBP/JPY daily chart.
A late-session bullish turn and a buying signal indicate a buying bias.
The real body of the candlesticks has come quite close to the upper cloud of the Span Model and to the center band of the BB.
If it here holds from dropping,a return to an uptrend is possible.That is the point where an ascent could be expected.
Conversely, if it closes below the center band, a downtrend becomes a consideration, but…
Today's basic strategy is to expect some downside until reaching near the center band, and to sell until the center band is reached.
After reaching the center band, consider buying as the price may test higher levels.
It seems necessary to plan a strategy considering both selling and buying viewpoints.
Let's explore selling and buying levels from lower timeframes!
〇 4-hour chart
This is the 4-hour chart.
The late-span turned bearish and a selling signal is lit. A selling bias is in place here.
When this pattern occurs, pullback selling can be entered with a reasonable degree of confidence.
Conversely, going long requires a solid pullback confirmation to be sustainable.
With the 4-hour −3σ and the daily center band at the same level around 132.500, a pullback to around this level could make long entries reasonable.
〇 1-hour chart
The 1-hour chart also shows late-span turning bearish with a selling signal, indicating a selling bias.Indeed.
It is a pattern that tends to attract pullback selling, so the priority is to look for selling first.
So, here is the summary of today's strategy!
① The basic strategy is to sell on a pullback. Sell when touching the 1-hour BB +2σ or the Span Model upper cloud.
② Take profits with reference to the 1-hour BB −2σ, and if possible, aim to hold to 132.500 by staggered exits.
③At 132.500, square the short position for the time being. If a rebound occurs at 132.500, view it as a sign of a potential return to an upward trend on the daily level and keep the long position.
④ If it breaks below 132.500, instead of immediately going short, wait until 132.500 acts as resistance before shorting for safety.
I think this strategy would be good.
Daily chart presents an important moment to determine whether the uptrend will resume. It would be wise to monitor developments carefully.
That concludes today's GBP/JPY strategy!
