Every now and then I will place my view for a longer time trade, when I find something that could be qualified as a high probability trade. Here is on of these possibilities, GBP-JPY. This pair always moves a lot on daily basis, in term of pips. Yet if were to look at a daily chart, we can see largely sideways price movement over last few weeks. Price has stalled around 214.00 on many occasions before and is once again approaching this level

My order calls for a buy at 214.10 and I’d like to see it go to 220.00. Ultimately, I think “the beast” is going to move even higher, but for that I’d have to use weekly charts and extend the time horizon. For now, 220.00 is the goal. This is relatively large time scale (daily charts), so don’t expect this trade to work out over night. Something like 2 weeks should be our “estimated” holding time.  A cautionary note- there is potential for a large draw-down here, so I’m using very small leverage for trades like this, or no leverage at all. In other words, 1 to 1 ratio. I will review this trade in a few days.
Now, something to start the week with. For that I want to buy another one of GBP crosses. At first, I took a look at GBP-CAD, but I don’t want to appear as if being hung up on Canadian dollar, so I decided to go for GBP-AUD.

My plan here is to buy on a breakout above 2.0645, looking for a 120 pips gain, or a decision of 2.0765. If the price retraces before reaching the buy level, I would like to buy it at around 2.0525-2.0500.
On other note, I expect USD pairs to be rather volatile, reacting strongly to every little news.
Let’s have a great trading week!
Mike K.