GBPJPY - Strong Return Of The Bulls

Now this week there are plenty of great opportunities to get long on the rise of GBPJPY. I'm looking for a retracement of the impulse we had from the UK's snap election announcement into weekly resistance/around 50% of the overall impulse.

On the daily chart, we have broken this major trendline dating back to December last year. From an Elliott viewpoint, we will be looking for a retracement to complete wave E, which will end this triangle correction from the October impulse. If that works out then we should expect the market to shoot up again for wave 3 of the bigger picture (not labeled). If you trade structure (chart below), not only have we broken this trendline but we have shot through a weekly resistance level. This means there is a good buying opportunity if we come down to retest it on the M60 or M240 charts.

To look for entries, you could try to catch a double bottom, engulfing candle or some other reversal pattern to get into the trade. This is the area i'm looking at (chart below) on the lower timeframes: 137.4 to 138.5. It's important to remember to look for confirmation and not just blindly going long at a level.

Targets have not yet been decided but it should move to at least 148.4 if this wave count is correct. Be sure to have a look for yourself to verify this.

Have fun trading for this week. Don't find setups that aren't there. Patience pays off, literally!

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