GBP/JPY Bullish 121 Trend Continuation Pattern
A bullish 121 trend continuation pattern on GBP/JPY looks
promising and can soon be entered, if price remains bullish.
GBP/JPY seems to prepare itself for a larger move to the
upside and should also generate a longer term overall bullish
trend. If you look at my analysis from last week concerning
GBP/JPY where I forecast a large move to the upside coming
at the end of July and beginning of August this year, due to
the similarity in formation of price action, RSI and the MACD
as in Decembre, 2001, this bullish 121 trend continuation
pattern seems to support that theory.
We will still need to be patient before entering a long
trade, I would recommend an entry with a close above
148.00 to be on the safe side. Also, there is still a lot of
news i.e. fundamentals that need to be processed, chief
among which will be Brexit topics. But regardless of news,
technically I see more bullish than bearish momentum
for the next few years even, but as always we will have
to wait and see how things unfold.
Lastly, a look at the RSI (settings 66.66 and 33.33) you will
notice that the RSI is holding well above the 40 level as
well as having formed a double bottom which of course
suggests bullish momentum building up here, too.
Trade long 1 (RvR ratio 2:1)
Entry: Close above 148.00
S/L: 143.70
T/P 1: 156.61
Trade long 2 (RvR ratio 2:1)
Entry: Close above 156.61
S/L: 153.37
T/P 2: 163.09
As always, scale out your profits and adjust stop/loss to
suit your personal risk management profile.
Happy trading
promising and can soon be entered, if price remains bullish.
GBP/JPY seems to prepare itself for a larger move to the
upside and should also generate a longer term overall bullish
trend. If you look at my analysis from last week concerning
GBP/JPY where I forecast a large move to the upside coming
at the end of July and beginning of August this year, due to
the similarity in formation of price action, RSI and the MACD
as in Decembre, 2001, this bullish 121 trend continuation
pattern seems to support that theory.
We will still need to be patient before entering a long
trade, I would recommend an entry with a close above
148.00 to be on the safe side. Also, there is still a lot of
news i.e. fundamentals that need to be processed, chief
among which will be Brexit topics. But regardless of news,
technically I see more bullish than bearish momentum
for the next few years even, but as always we will have
to wait and see how things unfold.
Lastly, a look at the RSI (settings 66.66 and 33.33) you will
notice that the RSI is holding well above the 40 level as
well as having formed a double bottom which of course
suggests bullish momentum building up here, too.
Trade long 1 (RvR ratio 2:1)
Entry: Close above 148.00
S/L: 143.70
T/P 1: 156.61
Trade long 2 (RvR ratio 2:1)
Entry: Close above 156.61
S/L: 153.37
T/P 2: 163.09
As always, scale out your profits and adjust stop/loss to
suit your personal risk management profile.
Happy trading
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