GBP JPY - Buy update

29 мар. 2021 г.

Hello Traders and Analysts,

A Note before reading - this is a forecast analysis - based upon our trading strategy. This is tagged long, due to purchasing further increments upon imbalances.
Please do not take this as face value and conduct the relevant investment strategy to successfully trade the probabilities.

Master Key for zones

• Red = Three Month
  
• Blue = Monthly
  
• Purple = weekly
  
• Scarlet - Four day
  
• Orange = Daily
  
• Magenta = 8 Hour
  
• Grey = 4hour
  
• Pink = 1 hour
  

See the previous analysis here

Original buy here.

Monthly imbalances:
Price has rejected the previous all time low of GBP JPY. It is important to note here as to why this area on the low is so significant.
This zone is a powerful buying zone for positional holders like us for two reasons;
1. - Price is clearly making lower highs
2. - The monthly wicks are closing bullish - suggesting the zone is a fractal buying imbalance - with clear evidence of a engineered liquidity wick rejection.



Weekly Imbalances
The reason for buying in at this level is simply due to the imbalance being filled on the weekly at 140.5-70, this zone was the top of a trading range where patience is required here for a Fibonacci retracement back to 137 zone. Upon a rejection to 136.80+ a buy would be prominent.

Keeping the outlook in perspective is the key to buying on a higher timeframe, more aligns and there is less noise to worry about regarding reversals, trading ranges.

The reason behind the entry point here at 137.80
The monthly and weekly imbalances above the buy zone at 136.69 are geared for longs as the imbalance is yet again filled.

Daily Imbalances:
Now that 152 target has been reached - this is now in a weekly and daily imbalance where price will look to use the previous daily and weekly former imbalance to create a range for one final push into the next zone .
From here price will be monitored watching the all important weekly imbalance at the top of the structural move.
The daily imbalances in have been patient levels to signify buys. - Previous analysis has provided clear indicators as to why these are buying opportunities.

Price will fluctuate back to a low of 148, to regain liquidity measures and false breakout the sellers.

Profit taking
As mentioned in the previous analysis 150, 152, 154 are even numbers to take partial profits.
From this trade, profits have been taken leaving a small ending balance to follow through with smaller imbalances maintaining the open interest swaps.

Cross correlations between GBP USD, XAU USD
The price chart here signifies what GBP USD is doing, where the dollar is correcting against the pound from an imbalance level at 1. 40 - price is now in a correctional phase, awaiting a buy move, therefore GBP JPY with a strong inverse, is also experiencing the same inverse phase.


Current cross analysis
Here is the current analysis using the four day view and the monthly chart to see the rise of the Pound Sterling against the cross pairs as aswell as the correctional move for Gold.


Data Range shows entries


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