GBPJPY pair has been up, until it was rejected by the top of the Daily Cloud.
My long term bias is Bull. Eventually this pair will go above the cloud. (It could be tomorrow with BOJ monetary policy statement??)
However, it may be hard to imagine this pair will go above the cloud today, because H4 Stochastic is now in the down cycle. (See below)
As the next buy zone I would like to suggest
a) 187.20 ish (future 21EMA)
b) 186.75 ish (future 55EMA)
c) 186.56 (WPP & Role Reversal Support)
If you are Bear, however, you could short until then.
Below is the Hourly chart. You could consider to short this pair, from the next Stochastic down cycle, if the price makes Lower High (or even Double Top)
Remember, the buy zones that I wrote above, could be your profit targets.
Hope this setup helps you build your own.
YJ Baik – Forex.Today