JLS Trade: GBPJPY Target Zone Trading 134.00-154.00
Based on time series interest rate differential-based currency band method and the measured average weighted rates to current GBPUSD and USDJPY target zones, the estimated exchange rate target zone for GBPJPY is 2000 PIPs of which 134.00 as actual lower ceiling and the 154.00 as the estimated upper ceiling. The current monetary price movement to upward by their interest rate differential-based monetary price trend.
At 144.00, the pairs was compressed (pullback) and presently already resumed to upward by her interest rate differential monetary price trend. The current interest rate differential monetary price trend also carried by JPY carry traders to look for two source of profits from, the GBP appreciation by the JPY plus interest rate differential fees.
Trading strategies:
Long/buy at lowest rate (by technical method or by currency band method)
Average monthly volatility, 400 PIPs
Stop loss 400 PIPs
Target, 154.00 for estimated 600 PIPs, estimate by June 2019
Risk Category: Low
Risk management: stop loss position managed overtime to risk-free trading position as permitted by the market price movement to upward by maintaining 400 PIPs below the current rate. At such, should the current rate 400 PIPs above the entry rate then the trading position manageable to risk free.
Or,
Long/buy from interdays low (by technical method or by currency band method)
Average interdays volatility, 200 PIPs
Stop loss 200 PIPs below interdays low
Target, 200 PIPs (interdays high)
Risk Category: Medium
Risk management: stop loss position managed overtime to risk-free trading position as permitted by the market price movement to upward by maintaining 200 PIPs below the current rate. At such, should the current rate 200 PIPs above the entry rate then the trading position manageable to risk free.
Or,
Long/buy from daily low (by technical method or currency band method)
Average daily low/high, 100 PIPs
Stop loss 100 PIPs below daily low
Target, 100 PIPs (daily high)
Risk Category: High
Risk management: stop loss position managed overtime to risk-free trading position as permitted by the market price movement to upward by maintaining 100 PIPs below the current rate. At such, should the current rate 100 PIPs above the entry rate then the trading position manageable to risk free.
Note:
JLS Trade means I also trade this pair, but not prime target.
Your comments and opinion are welcomed. This analysis is integrating technical method to currency band method for easier to follow. This analysis will not be changed or altered unless there is major changes on the monetary policy made by the BOE, BOJ and the Fed during the upward movement of the monetary price trend.
At 144.00, the pairs was compressed (pullback) and presently already resumed to upward by her interest rate differential monetary price trend. The current interest rate differential monetary price trend also carried by JPY carry traders to look for two source of profits from, the GBP appreciation by the JPY plus interest rate differential fees.
Trading strategies:
Long/buy at lowest rate (by technical method or by currency band method)
Average monthly volatility, 400 PIPs
Stop loss 400 PIPs
Target, 154.00 for estimated 600 PIPs, estimate by June 2019
Risk Category: Low
Risk management: stop loss position managed overtime to risk-free trading position as permitted by the market price movement to upward by maintaining 400 PIPs below the current rate. At such, should the current rate 400 PIPs above the entry rate then the trading position manageable to risk free.
Or,
Long/buy from interdays low (by technical method or by currency band method)
Average interdays volatility, 200 PIPs
Stop loss 200 PIPs below interdays low
Target, 200 PIPs (interdays high)
Risk Category: Medium
Risk management: stop loss position managed overtime to risk-free trading position as permitted by the market price movement to upward by maintaining 200 PIPs below the current rate. At such, should the current rate 200 PIPs above the entry rate then the trading position manageable to risk free.
Or,
Long/buy from daily low (by technical method or currency band method)
Average daily low/high, 100 PIPs
Stop loss 100 PIPs below daily low
Target, 100 PIPs (daily high)
Risk Category: High
Risk management: stop loss position managed overtime to risk-free trading position as permitted by the market price movement to upward by maintaining 100 PIPs below the current rate. At such, should the current rate 100 PIPs above the entry rate then the trading position manageable to risk free.
Note:
JLS Trade means I also trade this pair, but not prime target.
Your comments and opinion are welcomed. This analysis is integrating technical method to currency band method for easier to follow. This analysis will not be changed or altered unless there is major changes on the monetary policy made by the BOE, BOJ and the Fed during the upward movement of the monetary price trend.