GBP/JPY Day Trade:1:2 R/R long-trade set-up conditions have emerged

Ross J Burland FXStreet

Further to the earlier analysis, GBP/JPY Price Analysis: Higher highs on the cards, or bearish breakout?, the conditions are ripening for a long entry for a short term day trade targeting higher highs in GBP/JPY

15-min chart day trade set-up

The trade is a high-risk setup, as the price is already in a supply area on the longer-term charts.

This means traders will want to have a reduced level of risk if the trade setup is to be taken.

So, if the trader risks usually 1%, 0.5% might be more appropriate until break-even where additional risk can be added towards the target.

Additionally, the markets are jittery into the Jackson Hole so a lack of momentum may make for a very slow burner between stop and target, another reason this trade is a reduced risk trade.

Update

The market did not perform in a convincing bullish manner so following the bearish price action, the trade was exited at breakeven ahead of major event risk in the Jackson Hole.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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