GBP/JPY spiral trade

The trend of gbp/jpy has been a gradual trend up, with well structured waves. The movements in GBP/JPY dictate the movements, in USD/JPY abd GBP/USD.

The options are to wait for the low point in the wave cycle of GBP/JPY to enter trades long in GBP/USD and USD/JPY, effectively taking USD out of the picture.

So if your bullish on GBP/JPY

1) long gbp/jpy outright
2) long equal usd amounts of GBP/USD and USD/JPY

If bearish on GBP/JPY

1) short gbp/jpy
2) short gbp/usd and short usd/jpy equal amounts

At this given moment in time: GBP/JPY is trading at 218.09
If you think its heading for support at 216.16, play the above trades.

Why would you buy GBPUSD and USDJPY when you can just buy the GBPJPY? With most brokers, the GBPJPY spread would be less than the sum of the GBPUSD and USDJPY combined.

Depending on your broker, the interest rate differential gained by holding the GBPJPY long would be better than the interest recieved from the individual trades.

Lastly, since the pip values are different for the GBPUSD and USDJPY buying them in equal amounts would not equal a true GBPJPY position. Equal amounts would actually leave you long GBP.