GBPJPY is the Forex pair that moves the most, i.e. has the largest ADR - average daily range of all pairs. With the right set of tools and with confirmation, it could be successfully traded on smaller time frames like in this example - the five-minute time frame. This was a successful trade I took yesterday on a live account that was triggered by confluence of indicators and price action.
This one was a classic fade trade (as you see I like these for scalping). There was a strong bearish move on the one-hour chart and around the close of the NY session exhaustion started to take place on July 15, 2015.
I executed a long with a take-profit target at 23.6 fib retracement of the leg down. Bagged around 12 pips. Great scalping trade.
On Jul 15 a strong bearish synergy bar closed on the daily chart for the kiwi (NZDUSD). The fundamentals were also in agreement (negative New Zealand economic indicators and a strong USD) so I executed a short. I set a break-even point at 127 Fibonacci extension of the previous leg down and executed my break-even Expert Advisor to watch when the price action hits that point. My take profit was set at Fibonacci extension 138 of the previous leg down since it was way past the third leg of the down trend (fourth or fifth leg already) and a danger of trend waning was at hand.
On July 7, 2015 there was fundamental news concerning GBP. Manufacturing Production (m/m) for the British Economy came out rather disappointing at -0.6% downplaying the forecast of 0.1%. The pound already looked very bearish on the hourly chart.
When the one-hour bar closed following the bad news, it had broken the lower Bollinger Band. I executed a short with a take-profit slightly above the S1 pivot. Gained approximately 10 pips. The short was good for a lot more considering the negative miss of the economic data forecast but I had to be conservative.
The Greek situation was definitely not going well as Tsipras & Co. were gambling with the patience of EU top dogs, etc. The Greek bailout was soon due to expire (Jun 30 2015) and there was still no agreement. I was surprised at how EURUSD was still holding up. The fundamentals were definitely in USD's favor.
On June 24 2015 there was a USD rally after the uncertainty with Greece and the EUR zone. One of the most prominent moves was on USDCAD. As we were getting ready for the Asian session, the pair showed exhaustion signs on the hourly chart. There was also a longer term resistance right around that area, which further confirmed that the pair was about the go south.
Three bars with huge bearish wicks appeared on June 19 2015 after a rally. This signified that the pair had hit a strong rejection/resistance area. I shorted aggressively for this being a very strong short signal. Took quick 6-7 pips but the trade was good for a lot more. However, there was definitely a cluster to the left (not shown on screenshot) and I had to be conservative with the T/P.
As always, trades like this one require a lot of experience and a good ECN broker.
At 9:00 AM EST on June 19, 2015 a pin bar appeared at the low boundary of a range on EURGBP. The pair had been moving in a tight range for the previous few hours. I executed an immediate long order when the next bar passed the high of the signal pin bar. I placed the T/P conservatively a little below the close of the previous bar formation near the upper boundary of the range for a 8-9 pip profit.