GBP-JPY Coming into target for possible buy to the long side

GJ is now coming into the area of interest for me, i'll not be looking to buy anything at the first area, rather than to watch and see price extending lower towards the bottom area target.

The first area which i'm looking for price to reach is the 128.991, but i'm looking for price to go through this level, take a breather for a while, and then continue lower towards that bottom target, i'm not interested is selling this short, i'm only interested in getting into the longer term upward move. So it's a watch and see over the coming few days.

The lower area where i'm focused on is at the 124.183 area, that's where i'd be interested to look at taking a long position with a tight stop not much below there, once we get there, targets will be a bit more clearer.

Don't try to short this unless you know what your'e doing, as GBP-JPY is not called the widow maker for nothing....

Comment:

Cash heading towards the JPY, we could be targeting 127.644 today as the first initial target and then perhaps bounce from there, although that would be in my view a short term move, but given JPY strength it could go much lower. In essence, I'm looking at this move as a wave 3 of 5, so it should find some resistance at the areas already mentioned, and then stop for a breather/pull back in a wave 4, before heading lower in the final move which would be the wave 5 of a double zig-zag in y. Lets see how this unfolds today/tomorrow. Great opportunity if this plays out. I traded this up to the near highs from 131 level, and then back down again. So i expect it to head much higher in the weeks and months ahead.

Comment:

GJ may have bottomed here, and we're off to new highs.

I've entered an initial small long position at 13019. I'm now waiting for confirmation though. Will update the chart once i see an impulsive rally in 5 waves in 1, then i'd be looking to add to my long position on a retracement of the initial wave 1 move, which would represent a pullback into the region at approx. 50% to 61.8% of that initial move. SL would be directly below the low plus an allowance for the market trade spread.

Comment:

PS... moving higher and through the 131.232 resistance line, would add greater confidence that a possible reversal was underway. Let's see how this plays out over the coming hours. If this move confirms the low is now in, then price did hit my initial target, albeit, i did think and expect it to go lower. If the low is subsequently taken out, then my stop will trigger, and i'll look to get into the trade again at a lower price point.

Comment:

price now moving lower, my point of main interest is down at the 142.000 zone, this could possibly bottom out here, and then i'd be looking for a reversal to the upside, let's see how it goes.

Trade closed: target reached:

Bounce off the 124.183 line and up to the 132.00 line now appears complete, now we look to be heading lower, to complete this wave v of iii leg down. Target is below previous low 124.00 zone then a corrective move up in wave iv, this move will set up GJ for the incoming overall low for this move to the downside, when we get there i'll be looking and into the area of 118.000 price zone, then i'll be looking for a trend change reversal to the upside.
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