The Experts Zone: GBPJPY

An old friend of mine and myself, figured that we need some real quality thread on trading and chart analyzing GBPJPY in a professional manner instead of the chit chats and clownish begaviour on other threads.

So here we are, with a thread which has a posting restriction of 10 vouches to keep the thread clean of dirt.

We intend to provide good clean analysis on the pair with detailed charts on how we read the trend and how we figured out the trade.

This thread can also be taken as an educational thread by newbies.

Disclaimer:
Do not trade just because we said it, read your own charts and make your own decisions.

Before I post a chart, allow me to post a few links which are in direct reference to this post, and thereafter we will work on what to expect next.

http://www.forexfactory.com/showpost.php?p=2588705&postcount=164583

http://www.forexfactory.com/showpost.php?p=2588807&postcount=164602

A chart reference was given here
http://www.forexfactory.com/showpost.php?p=2589376&postcount=164641

and well rest is history.

Now the question arises is what to expect next ?

What to expect next ?

On Daily, using monthly fib expansion.

1. We have a daily chart trend for a small correction, subject to break below certain levels.
2. If 135.80 breaks here, then we continue south for the next level of 133.38.

On 4 hour using weekly fib expansion:

1. Well, unless the monthly fib level above does not break, we should see some consolidation here, overall, during the current NY session, I do not think it will tank further and we should now enter intorange trading here.

Cool idea. Looking forward to seeing how this thread progresses.

Keep it Clean guys.

Can I ask what Amount of Experience you are passing my way?

1. It will be best to keep the chart analysis posted in this thread as a reference material only and to trade according to your own trading method.
2. This way if the trend changes, you will know what to do, according to your own analysis.

Currently GJ looks ripe for scalp into 137.22

Value of ema 13

I had been working over the week, to reduce the number of indicators that I use, and also to visualize the basics in terms of PA.

I found this pretty useful as ema 13 is the basic building block of many indicators.

So instead of drawing it on the charts as defaults, I put it in terms of horizontal lines and labelled them according to the timeframe.

Over the weeks, what I did find was

1. When the lines bunch up togather then it means a new trend is developing
2. When they come into a specific sequence, they confirm a trade.
3. When the sequence breaks then it is time to exit.

The buy seuence goes

1. 15M
2. 30M
3. 1H
4. 4H

The sell sequence is

1. 4H
2. 1H
3. 30M
4. 15M

And when the sequence breaks its flat market conditions/ranging, with each line forming excellent S/R line

Like currently there is no sequence so it means the price may attempt to reach the 4H, or the 4H line may attempt to reach the price line, once they bunch up, then I will start looking for a new direction.

We are still stuck in the range trading/ conolidation here.

The current range is 137.22 / 136.35

Only a break of either 135.80 or 137.22 will give us a clear direction.

In the longer term, as long as 135.52 holds we should rebound back to 141 level, subject to the break of 137.22, but if 135.80 breaks and further 135.52 then we tank hard down to 127 levels.

We finally broke through the support level of 135.80 and are now headed into the next support zone of 133.40

As long as we remain below 135.50 , GJ will tank hard to 127.

With 135.50 gone, all eyes are now on 127 level.

However, we should have a small retrace up before continuing down again.

The monthly fib level of 135.45 should be touched atleast once before continuing the journey south.

I have placed sell limits at 135.40 with tp as 127.50

The Lion comes online on a new day thursday and the tanking continues.

So, where do we stop ??

what are the important levels to watch for possible support/retrace.

Here are the important levels along the way, which can influence the current tanking

1. 133.38
2. 131.44
3. 129.50
4. 126.73

Before any of these levels is either reached or touched atleast once do not close the shorts, if you are a long term trader, but if you are a short term scalper then you are the best judge.

.

On the current daily chart

we have fallen pretty quick, as the time series line still has not been able to catch up.

So what I feel here is that by friday we should touch 131.57, then return back to 133.51 for short covering, before continuing south.

This is just a guess, lets see how it plays out.

Good job done, now here we start the tricky part.

well well

A return back to atleast 133.51 was expected, but a stronger pullback to 136 area was a sweet surprise.

Thats almost a 1000 pip move in a single day !!

I missed the action, cause I went to sleep.

but the exact level bounce was priceless

As long as 135.45 holds we can see a move into 38.22

Completed.

Terminator 4: The Rise of Fx Profits

.

One more enjoyable week, gone by.

Points to remember:

1. GJ follows monthly fib during trending
2. Weekly fib during ranging.
3. Daily fib is just time pass.

Monday expectations:

We are now in a range of 138.22 upper and 135.80 lower channel.

Going by 30 min, 1 hour and daily, we should touch 135.80 atleast once.

And going by 4 hour, this should prove to be a bounce level to retest 138.22.