GBPJPY - Watching for a Long Entry set up to develop
GBPJPYApproaching potential reversal area. (IF long-term uptrend is to continue)
GBPJPY has had strong movements in both direction. Since 8/21, it has been trending down (D1) and is roughly 1330 pips below its August high. It is at a key support area (1W chart trend line formed by 10/2014 & 4/2015 lows) and a potential long set up entry point. Any trade would need to be managed closely. A more conservative approach would be to confirm trend reversal on D1. The conservative approach would may take 1-3 weeks to develop.
My trade plan and recommendation: With GBPJPY's volatility, patience is required. I am not going to enter a multi-day long trade until 9/21 EMA is indicating trending up. After 9/21 EMA is in an uptrend, pull backs with trend reconfirmation on 1H would initiate entry points.
The other scenario would be short entry points following a break of 179. Entry, again would be upon trend reconfirmation on 1H following a D1 correction.
As mentioned, the entry/trade plan above will require patience and potential weeks to develop. Short intraday trades will be considered in the interim.
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