We stick with the 4 hour chart analysis but this time for the gbpjpy.
As you can see price has been coming down for quite some time now.
Ideally I would look for bullish retracements and short in direction of the bearish trend.
I do this until I see a double bottom or a bullish 123 pattern.
As you can see this is the pattern that we have now a bullish 123 pattern.
Then I look for a level of support which is also available on this chart where price is right now.
The trigger would be an oversold stochastik indicator crossing its 20 % line upwards which is also happening right now.
So there you have it a confluence of factors before taking the trade which should all point into the same direction.
If the 123 pattern at the bottom where the stop loss is, gets broken then this bullish trade setup is no longer valid.
Target would be at the next resistance area.
BEST OF PIPS