GBP JPY - Bulls strolling to the next target
Hello traders and analysts.
Below is our setup for the pair GBP JPY.
Zone colour Master Key:
Blue = Monthly
Purple = weekly
Orange = Daily
Grey = 4hour
Pink = 1 hour
Monthly imbalances -
Price has rejected the previous all time low of GBP JPY.
This zone is a powerful buying zone for positional holders like us for two reasons;
1. - Price is clearly making lower highs
2. - The wicks are closing bullish - suggesting the zone is a fractal buying imbalance
See the original idea for the 2021 bullish outlook,
Weekly timeframe
Four hour chart
We had a falling wedge on the four hour time frame, where price had bounced off the high, created a correctional sell pattern, however price has managed to sell off to 144.50. Price broke through with the continuation pattern and is now heading towards the weekly imbalance at 148 highs. We are currently in the weekly imbalance zone now, between 145.8 to 148.00.
Fundamentals at play
With the successful Brexit transition and recovery from the Risk-off scenario from Brexit, the commodity hedge from Gold will not push higher. While the vaccination and cases remain a concern for the UKs long term success in the economy opening up, the GBP has been seen rising and looks set to continue with a target of 143 poised to be filled by the bulls.
XAU USD & GBP JPY are safe havens so expect the volatility within the pairs to remain strong as short term sentiment turns sour.
From a Fibonacci prospective:
We took the low and plotted the high.
We expected the previous wick to be filled as the order blocks in GJ are volatile so price and hit a fresh zone and reverse very quickly . The extension targets below signify our areas of longer term profit taking.
At the time of the previous idea - the positional trades still hold and require a quick overview high level to ensure the trade is still running to target.
The overall bullishness from GBP is due to the JPY with an imbalance on the weekly (see the key) above where price is approaching a purple weekly zone between 147+. We are currently in a weekly zone between 143-145 whereby price has been creating a steep incline however has had healthy price engineering.
Keep in mind the imbalances where price can retrace back to 145 (weekly). Targets are still set between 148-150 as bullish take profits.
Do you enjoy the setups?
We have 10 years combined analysis experience in world markets.
Offer our technical breakdowns here
Focus on technical output not fundamentals
Position and swing trades
Provide updates where necessary - with new updated ideas tracking the progress.
If you like the idea, please leave a like or comment.
To all the followers, thank you for your continued support.
Thanks,
Team LVPA MMXXI
Below is our setup for the pair GBP JPY.
Zone colour Master Key:
Blue = Monthly
Purple = weekly
Orange = Daily
Grey = 4hour
Pink = 1 hour
Monthly imbalances -
Price has rejected the previous all time low of GBP JPY.
This zone is a powerful buying zone for positional holders like us for two reasons;
1. - Price is clearly making lower highs
2. - The wicks are closing bullish - suggesting the zone is a fractal buying imbalance
See the original idea for the 2021 bullish outlook,
Weekly timeframe
Four hour chart
We had a falling wedge on the four hour time frame, where price had bounced off the high, created a correctional sell pattern, however price has managed to sell off to 144.50. Price broke through with the continuation pattern and is now heading towards the weekly imbalance at 148 highs. We are currently in the weekly imbalance zone now, between 145.8 to 148.00.
Fundamentals at play
With the successful Brexit transition and recovery from the Risk-off scenario from Brexit, the commodity hedge from Gold will not push higher. While the vaccination and cases remain a concern for the UKs long term success in the economy opening up, the GBP has been seen rising and looks set to continue with a target of 143 poised to be filled by the bulls.
XAU USD & GBP JPY are safe havens so expect the volatility within the pairs to remain strong as short term sentiment turns sour.
From a Fibonacci prospective:
We took the low and plotted the high.
We expected the previous wick to be filled as the order blocks in GJ are volatile so price and hit a fresh zone and reverse very quickly . The extension targets below signify our areas of longer term profit taking.
At the time of the previous idea - the positional trades still hold and require a quick overview high level to ensure the trade is still running to target.
The overall bullishness from GBP is due to the JPY with an imbalance on the weekly (see the key) above where price is approaching a purple weekly zone between 147+. We are currently in a weekly zone between 143-145 whereby price has been creating a steep incline however has had healthy price engineering.
Keep in mind the imbalances where price can retrace back to 145 (weekly). Targets are still set between 148-150 as bullish take profits.
Do you enjoy the setups?
We have 10 years combined analysis experience in world markets.
Offer our technical breakdowns here
Focus on technical output not fundamentals
Position and swing trades
Provide updates where necessary - with new updated ideas tracking the progress.
If you like the idea, please leave a like or comment.
To all the followers, thank you for your continued support.
Thanks,
Team LVPA MMXXI
