GBPJPY pair is now facing the thick Bullish Cloud on Weekly chart.
Also on Daily Ichimoku chart, the price is struggling in the cloud, but the exit is in sight. I am expecting the bottom of the cloud will serve as Support.
Here is the regular Daily chart. The current price (185.30) is on the support, and Stochastic has just crossed up and about to go above 25%.
Yes, I would like to buy this pair.
However, H4 Stochastic is already overbought, and the price is still riding 55EMA down. Riding 55EMA expects Higher Low or Double Bottom.
Thus I will look for the Long opportunity when the Stochastic turns into Up-Cycle. (Perhaps 4-6 candles away… meaning 16-24 hours away!
Please make sure the price is either forming Double Bottom or Higher Low (not Lower Low), before entering the Long trade.
Hope this setup helps you build your own setup.
YJ Baik – Forex.Today @ Tokyo