GBP JPY - Bulls on parade

7 thg 2, 2021

Hello traders and analysts.

Key:
Purple = weekly
Blue = Monthly
Orange = Daily
grey = 4hour
pink = 1 hour

See our update to the tracking of our position on GJ
The original idea is here for 2021:

Where are we and why are we there?
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. [this has been completed]
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 [with a deep retrace liquidity zone]. The extension targets below signify our areas of longer term profit taking.


While we did not add to the trade here, the opportunity here for buyers was a great opportunity as the 61.8% (golden ratio) hit.

Here is our original take for our last entry:

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. The imbalances where price can retrace to is now to 137 (weekly) or monthly low 134-135. On a strong imbalance 150+ is the target.
From a daily, 4 hour view.

Bullish;


Bearish
This will be extended from the daily rising channel upon a break of 143.4


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Team LVPA MMXXI