Today, I will be helping you to know how to trade GBP JPY successfully, first, I always recommend you run a proper market analysis by paying attention to the market structure.
Becoming a successful trader takes time and consistency; it requires getting not just knowledge but the right knowledge.
Your journey to becoming a successful trader will compel you to focus on a few pairs to get the desired result.
You can focus on pairs (country currency) that operate on different economic models like the GBPJPY;
When you start focusing on a few pairs then you start to understand how the currency pair works.
Follow me closely to know more.
HOW TO TRADE GBP/USD SUCCESSFULLY
The GBPUSD currency is widely traded because of its volatility, especially during the London session by day traders.
There are many ways to trade GPBUSD successfully, in all of these methods and strategies one thing that is pivotal is the right understanding of market structure.
This market structure gives you an overview of the market with support and resistance zones, order block, chart patterns, etc. also paying attention to the trading sessions.
HOW TO TRADE GBP JPY SUCCESSFULLY
Find below what you need to know to trade GBP JPY successfully;
- Market Analysis on higher timeframes
It is impossible to be consistent in profit without analyzing the higher timeframe, Analysis on a higher time gives a much clearer perspective of the dominant market trend.
By higher timeframe I mean D1 H4; you can use H1 for entry.
- Inter switching between line chart and candlesticks
This is another important part of trading, the line chart gives a clear-cut zone of major support and resistance without the wick. They can also be used as areas to identify order blocks and confluence. (Smart money concept).
This should be used alongside candle sticks as well to maximize your entry position.
- Break of structure/ chart pattern
Break of structure and chart pattern works well on major reversal zone on a higher timeframe.
It is found in previous-order block zones. This is what many experienced forex traders do to be consistent in profit. They are patient, they wait for this opportunity to open to them and you should too.
Below are images to illustrate the above.
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GBP/JPY TRADING VIEW
The image above shows a typical trading view of GBPJPY on the H4 chart.
GBPJPY CORRELATION
Currency correlations are used by forex traders to spot differences and similarities among currency pairs. Either they go in the same direction or in opposite directions.
Above and Below are images showing GBPJPY positive and Negative Correlations.
GBPJPY STRATEGY
The above image shows a clean GBPJPY strategy using chart pattern technical analysis Bullish Symmetrical triangle with a W-formed pattern inside the triangle.
The white spot area marks areas of entry for buy. It is preferably on a higher timeframe from H1 upward.
GBP/JPY BREAKOUT STRATEGY
When trading breakouts, you will be a more profitable trading breakout in the direction of the dominant trend. Do not trade breakout against the dominant trend.
Below is an image example of the GBPJPY breakout strategy.
As you can see the dominant trend is bullish, after the breakout, you can use a buy limit pending order and set your stop loss below the colored box.
BEST TIME TO TRADE GBP/JPY GMT
The optimum time to trade GBPJPY GMT is between 8 and 9 a.m. GMT in the London and Tokyo market sessions.
There will be significant price fluctuation during this time because many day traders will be attempting to enter the market.
When trading the GBPJPY GMT, there are a few extra things to keep in mind. It’s critical to understand the dominating trend over a longer time frame and keep an eye out for news releases, particularly those with high effects.
Finally, if you uncover a chart pattern that corresponds to your market research during this session, your trade is set.