The GBP JPY could give us a 100-Pip trade in the next 12-24 hours if we see a good signal on the 4H Chart. This would be in response to the Daily Chart signal already given at the Resistance boundary of the large Pennant. Giving us a heads up that this is likely to happen was the positively correlated CHF JPY that had a very similar setup last week.


DAILY CHART - CHF JPY


The trade would have involved entering at the close of that Daily bearish candle, placing a Stop Loss at the high of the ABC on the 4H Chart. That area also coincided with the Resistance itself, reinforcing the protection of that Stop Loss.


4H CHART

Given the short distance of this trade, one could have comfortably set a 100-Pip target above the Support. This would then have been hit by the following trading session this morning. Turning to the GBP JPY, we see that the Daily Chart is providing a similar setup.

DAILY CHART- GBP JPY

If the current pullback taking place on the 4H Chart leads to a bearish signal, then the Support area of this Pennant is likely to be hit.

4H CHART




Entry could be at the close of the bearish candle that breaks the blue uptrend line, with the stop loss above the high. Lets see what happens.
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