GBPJPY Market Analysis and Trading Strategies.
*Personal Opinion
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Waveforms of each time leg
Monthly
Uptrend, currently bouncing off the upper boundary of the channel.
Possibly entering a correction phase.
Weekly
Uptrend.
The market is in a triangular consolidation, neither breaking below the last higher low nor making a new high.
Daily
After a large decline, price is moving sideways with no clear direction.
Recently, price has been trading inside a descending channel.
4-Hour
Uptrend.
The last higher low has not been broken, but recently price made lower highs and lower lows, creating a short-term downtrend.
However, the downtrend’s pullback high was broken to the upside again.
1-Hour
Uptrend.
Currently in a correction phase, forming a pullback.
Trade Strategies
Strategy①
Target the 4-hour uptrend’s wave 3.
Although the daily chart shows no clear direction, price has slightly broken above the origin of the recent lowest low.
Consider going long when the 1-hour chart breaks the current short-term trend and switches back to an uptrend.
Strategy②
Target the 4-hour downtrend’s wave 3.
From a larger daily perspective, price is near the upper boundary of the channel.
Assuming the recent drop is wave 1 down, and the current move is corrective wave 2, wave 3 down may be starting soon.
Since the 1-hour chart is currently in an uptrend, watch for a breakdown of that trend, such as a break of the higher low or formation of lower highs and lows, then consider a short.
Strategy③
Target the middle of the 4-hour wave 2 up or wave 3 down.
Because the range is short, to improve risk-reward, aim for the initial trend reversal on short timeframes like the 15-minute chart and enter a short.
