GBP/JPY Moves Higher As Expected

On Sept. 9, 2021, I posted on social media: “GBP/JPY - I will be watching for buying opportunities for a move higher towards the 152.20 – 152.60 area.“ The chart below was also posted on the same date as it illustrates the possible GBP/JPY bullish scenario. 

Price formed a bullish divergence pattern (black) and was then followed with a move higher that broke the previous lower high level, which signaled more upside was to come. The Tenkan pattern (blue) crossed above the Kijun pattern (pink), which also signaled a bullish view.

The GBP/JPY pair retraced back to the cloud and Kijun patterns (pink), which could offer a good dynamic support zone. I entered the Buy trade at 151.81 with a Stop Loss at 151.41, a Target at the 1:1 RR minimum, and A Full Target at the 1:2 RR.

GBP/JPY One-Hour Chart for Sept. 9, 2021

The GBP/JPY pair eventually moved higher, and on Sept. 10, the price hit my 1:2 RR target at 152.61 from 151.81 for +80 pips (+2%). A trader should always have multiple strategies all lined up before entering a trade. Never trade off of one simple strategy. When multiple strategies all line up, it allows a trader to see a clearer trade setup.

GBP/JPY One-Hour Chart for Sept. 10, 2021

Like any strategy, there will be times when the approach fails, so proper money/risk management should always be used on every trade.