【9/27 (Fri)】Analysis of GBP/JPY price action and trading strategies
Hello, this is Kinugasa.
This is the pound-yen trading strategy for Friday, September 27.
The trading strategy reflects Kinugasa's view and does not guarantee profits. Please understand that if you trade based on this for reference and incur losses, Kinugasa cannot offer any compensation.
Additionally, the analysis is based on a span model and a Super Bollinger approach.
There is a detailed explanation in the articles below, so please have a look if you like.
Now, let's take a look right away!
Pound/Yen Strategy for Friday, 9/27
Daily chart
This is the daily chart of Pound/Yen.
The lagging span is bullish and buy signals are flashing, indicating a bullish bias..
As yesterday, we are in a very important phase.
The upper cloud of the span model and the center band of the BB are overlapping around 132.650.
If it breaks below here, the price is expected to face significant downward pressure. In that case, it is also necessary to consider moving down to 131.200, the lower bound of the span model cloud.
Conversely, forming a floor around 132.650 and returning to an uptrend is also quite possible.
To be able to trade calmly in either scenario, let's plan the strategy from lower time frames as well!
Hourly chart
Four-hour chart.
Lagging span is bearish and sell signals are flashing, indicating a bearish bias..
On the four-hour chart, it appears to be trading within a 100-pip box range.
So far, it has broken downward each time, with the 100-pip lower bound being updated on each breakout. I think this reflects the basic properties of a chart.
Currently, it is in a range of 133.400–132.400, but if it breaks to the downside, the target would reasonably be 131.400, which is also, as mentioned above, the lower cloud level of the daily span model.
From a four-hour perspective, sell at the upper end of the box range and buy at the lower end. If it breaks, go in the direction of the breakout—this is a very simple strategy..
Basically, I think this is fine, but I will consider refining the details on the one-hour chart.
Hourly chart
This is the one-hour chart.
Lagging span is bearish and sell signals are flashing, indicating a bearish bias..
The Bollinger Band squeeze is pronounced. It seems hard for price to move much in either direction.
Typically, we would detail the strategy on the one-hour chart, but honestly this chart provides only the same information as the four-hour chart—sweat
Since it is moving within a 100-pip range, sell at the upper end and buy at the lower end. If it breaks, follow the breakout direction.
Because pound/yen is currently in a crucial phase, the strategy tends to become simple.
So, here is the summary of today’s strategy!
① Right now, on the daily chart, we are in an important phase where both an uptrend and a downtrend could occur.
② It is a period before a trend emerges, so we are trading within a strong range from the four-hour to one-hour timeframes: 133.400–132.400.
③ Therefore, sell at the upper end of the range, buy at the lower end. If either boundary is broken, follow the breakout direction.
I think this kind of strategy would work well.
Today is Friday, so there is a possibility of a wait-and-see mood, but on the other hand, around the end of the month London fixing, there is potential for large moves due to position adjustments.
We should trade cautiously to avoid any strange damage at month-end!
That is all for today’s pound-yen strategy!
