GBP/JPY Trade Note

Recommendation: BUY ON MORE PULLBACK, OR ON A BREAKOUT

Current Trend: Short- and med-term up.

Strategy: Go long either on a pullback closer to line 2, or a break above recent highs.

 (Daily)

• Updating a chart of the Pound/Yen shown here two weeks ago. It recently broke out of a large channel (lines 1 and 2). It has paused over the past week in a ‘mini head and shoulders’. This is a pause before it heads higher again.
• While the GBP/JPY is very much still a med-term hold. In the short-term, look to buy (or add to holdings) it if it either moves down closer to line 2 (148.20-147.70 region), or if it trades above last week's high of 151.41. Do whichever happens first.
• Its minimum update target (conservatively measured) is 157.20, for taking profits.
• The stop-loss is a close below 146.00. Once it closes above 151.41 move the stop up to a close below 147.50. And from 155.90 raise it again to a breaking of its prior two-day low to protect profits.

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