I already gave you guys excellent reasons why the JPY will weaken against the AUD in a post earlier this week. The trade idea is not yet profitable but since we are heading for 4 digit pip returns we will have to wait a few weeks.
Today I am entering a shorter time frame trade versus the YEN again but this time I will be buying the British Pound versus the YEN, this my trade idea is on GBPJPY.
This post will be short and rather direct, I only want to cover what I see at the moment and what I plan to do with the trade if it heads up or down.
As the chart below shows, the pair is almost a 2 year uptrend so far and we are trading at a key support level right now. (this gives me assurance that AUDJPY will head higher too).
Now I know I should not be exposing myself versus the same currency twice but I just can't resist myself and I have profits to spare from the last 2 weeks of trading... I also have big trading goals this year and need to be a little riskier. (Remember risk = reward, if there is no risk, then, there is no reward).
(click to enlarge)
By looking at the chart above you will notice,
That price action is trending within the blue trend lines.
Price action has tested the current level (at the blue support level) multiple times
3 recent lows are connected with the yellow trend line
The 3 higher lows pattern is a powerful bullish reversal pattern
A strong bullish pinbar has formed with yesterdays candle
You will also notice 3 green highlighted levels, they are key profit targets which I believe price action will reach, for the traders out there who don't like to hold on to trades too long the first level should be hit in a couple of trading days once price action starts heading higher.
The medium level would take about a week to two and the final level could take a few weeks to a few months.
I am already in this trade and I have some small profits and my risk reward is close to 1:3 which is solid in any case and a minimum which should be targeted by us, the traders.
I don't have much more to say about this trade idea, but if you haven't checked out the AUDJPY post by now make sure you do so right now as if it works out, and you trade it, you'll be a thousand plus pips happier!!! (and wealthier!)
Thats it from me guys, comments are very welcome (AND WANTED!!!) so don't be shy!