GBPJPY set for bullish move in the 2nd half of the week.
Based on the Ichimoku analysis, here’s a trade setup using the 4-hour and daily charts, incorporating Ichimoku Wave and Time Theory:
1. Observations on the Daily Chart:
Trend: The price is within the Ichimoku cloud, indicating consolidation or indecision. However, the bullish attempt to break above the cloud suggests upward momentum might develop.
Key Levels:
Resistance: 197.50 (upper cloud boundary and recent highs).
Support: 194.50 (Kijun-Sen and lower cloud boundary).
Chikou Span (Lagging Line): Inside the price action, signaling no clear trend confirmation yet.
Wave Theory: After a sharp rally in mid-December, the market shows signs of completing a corrective wave within the cloud.
Time Theory: If the next bullish move aligns with the current time cycles (Kihon-Suchi intervals: 9, 17, 26), a breakout may occur around the next 2–3 trading days.
2. Observations on the 4-Hour Chart:
Trend: The price is trading above the cloud, suggesting a short-term bullish bias.
Key Levels:
Resistance: 197.00 (recent highs).
Support: 195.50 (Kijun-Sen on the 4-hour chart and near the cloud top).
Chikou Span: Positioned above the price action, supporting bullish momentum.
Wave Theory: The impulsive move to 198.00 was followed by a correction back into the cloud. Current price action suggests a potential new bullish wave starting.
Time Theory: Time intervals suggest a minor pullback may complete soon, and the next bullish wave could initiate in the next 4–8 candles.
3. Trade Setup:
Bullish Scenario (Preferred):
Entry: Wait for a close above 197.00 on the 4-hour chart to confirm bullish momentum.
Target 1: 198.50 (previous high on the 4-hour chart).
Target 2: 200.00 (psychological level and wave projection).
Stop Loss: Below 195.50, where the Kijun-Sen and cloud support converge.
Bearish Scenario (If Daily Cloud Resistance Holds):
Entry: If price rejects 197.00 and closes below 195.50 on the 4-hour chart.
Target 1: 194.00 (daily cloud support).
Target 2: 192.50 (next significant support on the daily chart).
Stop Loss: Above 197.50.
4. Ichimoku Wave and Time Theory Insights:
Wave Analysis: The market may form a new bullish N-wave if it breaks above 197.00. Targets for this wave could align with the 198.50–200.00 zone.
Time Analysis: Watch for reversals or breakout confirmations within 2–3 trading days (daily chart) or 4–8 candles (4-hour chart), aligned with the Kihon-Suchi cycles.
1. Observations on the Daily Chart:
Trend: The price is within the Ichimoku cloud, indicating consolidation or indecision. However, the bullish attempt to break above the cloud suggests upward momentum might develop.
Key Levels:
Resistance: 197.50 (upper cloud boundary and recent highs).
Support: 194.50 (Kijun-Sen and lower cloud boundary).
Chikou Span (Lagging Line): Inside the price action, signaling no clear trend confirmation yet.
Wave Theory: After a sharp rally in mid-December, the market shows signs of completing a corrective wave within the cloud.
Time Theory: If the next bullish move aligns with the current time cycles (Kihon-Suchi intervals: 9, 17, 26), a breakout may occur around the next 2–3 trading days.
2. Observations on the 4-Hour Chart:
Trend: The price is trading above the cloud, suggesting a short-term bullish bias.
Key Levels:
Resistance: 197.00 (recent highs).
Support: 195.50 (Kijun-Sen on the 4-hour chart and near the cloud top).
Chikou Span: Positioned above the price action, supporting bullish momentum.
Wave Theory: The impulsive move to 198.00 was followed by a correction back into the cloud. Current price action suggests a potential new bullish wave starting.
Time Theory: Time intervals suggest a minor pullback may complete soon, and the next bullish wave could initiate in the next 4–8 candles.
3. Trade Setup:
Bullish Scenario (Preferred):
Entry: Wait for a close above 197.00 on the 4-hour chart to confirm bullish momentum.
Target 1: 198.50 (previous high on the 4-hour chart).
Target 2: 200.00 (psychological level and wave projection).
Stop Loss: Below 195.50, where the Kijun-Sen and cloud support converge.
Bearish Scenario (If Daily Cloud Resistance Holds):
Entry: If price rejects 197.00 and closes below 195.50 on the 4-hour chart.
Target 1: 194.00 (daily cloud support).
Target 2: 192.50 (next significant support on the daily chart).
Stop Loss: Above 197.50.
4. Ichimoku Wave and Time Theory Insights:
Wave Analysis: The market may form a new bullish N-wave if it breaks above 197.00. Targets for this wave could align with the 198.50–200.00 zone.
Time Analysis: Watch for reversals or breakout confirmations within 2–3 trading days (daily chart) or 4–8 candles (4-hour chart), aligned with the Kihon-Suchi cycles.
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