I am starting this thread for the study of gpy/jpy I have been concentrating on this currency pair and have found some interesting patterns in price action.

The thing I find with gbp/jpy is that the price bounces around alot and gives alot of opportunities for scalping some pips as well as riding a breakout.

I like to trade a bounce off of support and resistance levels on this currencey, also fib lines work good as well as modified bollinger bands.
The reason I like to trade the bounce as opposed to the breakout is because the sl can be much tighter and also you can reverse the trade on a breakout without risking being whipsawed too much because usually when gbpjpy breaks a support or resistance it has some good movement too it especially in the london session.

I draw support and resistance levels and trade a bounce of them on a 1 min chart using modified bollinger bands to indicate and overbought or oversold state.
I use 3 sets of bands on a 1 min chart first one period 50 deviation 2 second period 50 deviation 3 third period 50 deviation 4. You can color coat them as well.

Basically what I do is look for a move to res or supp. and price within the 3 bands to trade a reversal. Also I keep an eye on 15 min 30 min and 1hr charts to give me an idea of price direction and if it is strong in one direction then I will only trade in that direction.

well this is a rundown of the stratagy I am currently using on gbp/jpy any input or other thoughts on this pair are welcome : )

oh I use forex com which has a ranging spread between 6-9 pips

Just want to clarify something. if the price is above the 50 period ma and above the deviation 2 (even better when it hits dev 4) and near resistance sell the opposite for below 50 period ma
also on the 1 min chart i go for a 20 pip move so between 11 and 14 pips profit. I do not get too greedy but another way to set a tp is a hit of 50 ma or opposite bollinger band.

It was the first pair that i tried to trade, wiped out 2 X $250 mini accounts in my first year of trading and learned heaps about MM and the power of the gpy/jpy.

Here are some threads i used to watch a bit:

Auslanco


Karmo

The 2nd thread is from a guy who is a great trader.

GP

Good range on gbp/jpy right now between 148.44 and 148.04



I could go long at 148.06 and short at 148.42




Thank you for the links.
MM is very important with any trading especially gbp/jpy, the moves it makes can be alot! so stop losses are very important. Well I dont exactly use stop losses but I do hedge losing trades.

With the trade I am looking at now I would risk 1-2% of my account depending on how wide I put my sl. I could put my stoploss at 10 pips and my take profit at 20 pips and risk 1% or a stop loss at 120 pips and risk 5%
I like to go with the latter on this currency as I know how volitile it can be, seeing it is the asian session currently a tight stop loss should do as well.

gbp/jpy broke resistance at 148.44 and is now overbought just below 148.79




I could take a short position at 148.77 for a break even on the first position at 148.42

I took a brak even on the first position and a tp of 36 pips on the second trade at 148.33

New set up here. I would like to take a short at 148.42



I suspect a break of 148.00 moving into the london session based on the 50 ema on 1hr time frame



I am looking at this gbp/jpy eventually moving below 147.00 through london

gbpjpy broke 148.00 resistance before hitting my sell order at 148.42



Price is a bit oversold and i will be looking for a retrace to the 50 ma on a 1 min chart to get in on this move suspected to go below 147.00 into london

I am looking for a bounce off current 50ma 1 min tf currently at 148.11 I just missed the last entry point at 148.14





Update: my entry was hit at 148.11, I am thinking of riding this one below 147.00 but there may be a few opportunities on the way down.

Great thread jm18,

I will follow closely and try to add a few charts of my own if you don't mind.

GP

Any input would be great GP!

147.77 could act as some short term support






a break below will help define the move to below 147.00
I will keep an eye on it

Update: price just broke 147.77 but is a bit oversold I expect a small retrace under 50ma
If I see the potential for a large retrace I will book profits and get back in at next resistance to gain some extra pips on the move down to below 147.00

I am looking to book profits at 147.50 for a retrace into 147.77 area



both to secure profits as well as earn more pips on the move down to below 147.00

Nice retrace in gbp/jpy too bad i missed my target at 147.50 to book prifits.



Maybe now I can get a good run through 147.50 down to below 147.00
above 148.04 may signal a change in direction for now I will hold my position.

Price spiked above 148.04 on a retrace but quickly retreated and slamed through 147.50 now above 147.35 but is over sold on the 1 min chart so i expect a retrace above 50 ma



I will hold my position to below 147.00 for now

Price seems to be stalling out here as we move below the 50 ma on the 1hr chart




I will book profits at 147.50 and wait untill after the weekend as I do not like to keep open trades too long into friday trading.



Update: I booked profits at 147.44 covering the 6 pip spread for a total profit of 61 pips

Total pips on the 2 trades today is 97 pips

I will be back Monday.

I will be gone the majority of next week but I will try to get a trade in when the market wakes up. It will be interesting to see where it goes now that it has broken back below 147.00. 145.50 is the bottom of this range from last week top is around 149.75.
Will gbp/jpy continue to range this week?