GBP JPY - Short, but awaiting the next move
Hello Traders and Analysts,
Breakdown:
1. Note
2. Contents
3. Research breakdown
4. Education recap
5. Information on Lupa.
A Note before reading - this is a forecast analysis - based upon our trading strategy. This is tagged long, due to purchasing further increments upon imbalances.
Please do not take this as face value and conduct the relevant investment strategy to successfully trade the probabilities.
Previous Recap
Master Key for zones
Here is the weekly imbalance below - where price has comfortably retraced from the monthly imbalance zone.
What does the imbalance show?
With the highs of 156.XX creating a needed retracement upon a pivot point - the monthly imbalance has been successfully filled.
From here using confirmations - shorts were placed to hedge and override long positions.
The weekly has created successfully - lower lows - meaning that price is looking to correct.
Now where is a good take profit point or where is a strong area to add buys upon the imbalance?
Scenario I
Using the Bullish scenario - where price will test the weekly imbalance between 151-148 - noting a opportunity to add longs from here.
Price has a fresh weekly zone - which is in this area. The pivot point will need to touch the imbalance and reject successfully.
Daily imbalances
Here is the daily imbalances - where prices has established three zones - where the monthly and weekly have created a as explained above, the lower lows. Price did create a low, and a retracement creating a further daily imbalance which was also the 50%-61.8%
The price targets complete the pattern at estimated 148.3XX subject to price taking us to this imbalance point.
Bearish scenario
Where price is rejecting the 156 - price can fall to a potential low - towards 141.
This is due to the heavy bullish imbalance which was established back in November 2020.
Price had created a reversion point - and from here the imbalance had tested the rising channel - creating a huge opportunity.
With imbalances - price can and will move back to retest the lower imbalance. Despite the overall *3month chart - producing a bullish consensus, the pattern can be a longer term buy.
Where price has a probability of breaking the weekly imbalance - the chance of the price continuing is likely.
Again this is using probabilities.
Fibonacci - Daily
Using the Fibonacci upon the daily timeframe, assists with looking for imbalances and confirms reaction points which aligns near levels which are of interest (by looking left).
Cross correlations between GBP USD, XAU USD
The price chart here signifies what GBP USD is doing, where the dollar is correcting against the pound from an imbalance level at 1. 40 - price is now in a correctional phase, awaiting a buy move, therefore GBP JPY with a strong inverse, is also experiencing the same inverse phase.
The 16 hour chart above shows some key levels marked by the Yellow line markings show the correlation between the asset prices using GBP as a positive and XAU as a negative. The correlation will vary between time frames, but in terms of the way the range works, this ignores noisy data on the lower time frames and highlights different imbalances which match up using the four day and weekly crossing of imbalances.
Current cross analysis
Here is the current analysis using the four day view and the monthly chart to see the rise of the Pound Sterling against the cross pairs as well as the correctional move for Gold.
XAU USD - weekly looks interesting in terms of a correlation aspect.
The JXY - what is going here?
Well, the Yen is getting stronger - which means the inverse correlation for the GBP JPY and respective pairs.
Do you enjoy the setups?
*Professional analyst with 5+ years experience in the capital markets
*Focus on technical output not fundamentals
*Position and swing trades
*Provide updates where necessary - with new updated ideas tracking the progress.
If you like the idea, please leave a like or comment.
To all the followers, thank you for your continued support.
Thanks,
LVPA MMXXI
Breakdown:
1. Note
2. Contents
3. Research breakdown
4. Education recap
5. Information on Lupa.
A Note before reading - this is a forecast analysis - based upon our trading strategy. This is tagged long, due to purchasing further increments upon imbalances.
Please do not take this as face value and conduct the relevant investment strategy to successfully trade the probabilities.
Previous Recap
Master Key for zones
- Red = Three Month
- Blue = Monthly
- Purple = weekly
- Scarlet [Red] - Four day
- Orange = Daily
- Green = 8 Hour
- Grey = 4hour
- Pink = 1 hour
Here is the weekly imbalance below - where price has comfortably retraced from the monthly imbalance zone.
What does the imbalance show?
With the highs of 156.XX creating a needed retracement upon a pivot point - the monthly imbalance has been successfully filled.
From here using confirmations - shorts were placed to hedge and override long positions.
The weekly has created successfully - lower lows - meaning that price is looking to correct.
Now where is a good take profit point or where is a strong area to add buys upon the imbalance?
Scenario I
Using the Bullish scenario - where price will test the weekly imbalance between 151-148 - noting a opportunity to add longs from here.
Price has a fresh weekly zone - which is in this area. The pivot point will need to touch the imbalance and reject successfully.
Daily imbalances
Here is the daily imbalances - where prices has established three zones - where the monthly and weekly have created a as explained above, the lower lows. Price did create a low, and a retracement creating a further daily imbalance which was also the 50%-61.8%
The price targets complete the pattern at estimated 148.3XX subject to price taking us to this imbalance point.
Bearish scenario
Where price is rejecting the 156 - price can fall to a potential low - towards 141.
This is due to the heavy bullish imbalance which was established back in November 2020.
Price had created a reversion point - and from here the imbalance had tested the rising channel - creating a huge opportunity.
With imbalances - price can and will move back to retest the lower imbalance. Despite the overall *3month chart - producing a bullish consensus, the pattern can be a longer term buy.
Where price has a probability of breaking the weekly imbalance - the chance of the price continuing is likely.
Again this is using probabilities.
Fibonacci - Daily
Using the Fibonacci upon the daily timeframe, assists with looking for imbalances and confirms reaction points which aligns near levels which are of interest (by looking left).
Cross correlations between GBP USD, XAU USD
The price chart here signifies what GBP USD is doing, where the dollar is correcting against the pound from an imbalance level at 1. 40 - price is now in a correctional phase, awaiting a buy move, therefore GBP JPY with a strong inverse, is also experiencing the same inverse phase.
The 16 hour chart above shows some key levels marked by the Yellow line markings show the correlation between the asset prices using GBP as a positive and XAU as a negative. The correlation will vary between time frames, but in terms of the way the range works, this ignores noisy data on the lower time frames and highlights different imbalances which match up using the four day and weekly crossing of imbalances.
Current cross analysis
Here is the current analysis using the four day view and the monthly chart to see the rise of the Pound Sterling against the cross pairs as well as the correctional move for Gold.
XAU USD - weekly looks interesting in terms of a correlation aspect.
The JXY - what is going here?
Well, the Yen is getting stronger - which means the inverse correlation for the GBP JPY and respective pairs.
Do you enjoy the setups?
*Professional analyst with 5+ years experience in the capital markets
*Focus on technical output not fundamentals
*Position and swing trades
*Provide updates where necessary - with new updated ideas tracking the progress.
If you like the idea, please leave a like or comment.
To all the followers, thank you for your continued support.
Thanks,
LVPA MMXXI
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