The GBP vs JPY appears prime for a breakout of the descending triangle pattern. This pattern is a bearish breakout pattern as price usually breaks to the downside on this formation. Price has currently pierced the triangle support level at 138.774. This level was pierced on the previous day falling to 137.758 but unable to sustain the breakout. Price needs to violate this level on the attempted move lower and even then if you look further left you can see where price formed a low at 136.473 on January 16, 2017. All Ichimoku signals on the daily time frame are bearish but Chikou Span is pushing up against the Kumo bottom at about 137.460. This level could be a concern as it may form support and we would see price falter and pull back.
When I am assessing a breakout opportunity I like to use the Williams %R as shown in the chart. . The Williams Percent Range indicator is very good at being able to signal a reversal one or two periods ahead of time. I have discussed this in some of my videos talking about trading Ichimoku with the Williams %R. The Williams Percent Range is an oscillator with values between zero and -100. The lines drawn at the -20 and -80 values as warning signals. Values between -80 and -100 are interpreted as a strong oversold condition, or a sell signal, and between -20 and 0.0 as a strong overbought condition, or buy signal. Currently the Williams %R is sitting at about -69. When Williams %R violates the -50 level from above then the chances of the bearish moving continuing become greater. Same for if the oscillator violates the -50 from below, then the bullish move continuing becomes greater. Once the oscillator violates the -50 it signifies increased momentum in the direction that the oscillator is moving. If we are looking for a short opportunity then when Williams %R violates the -50 level the odds of our trade working out increase because momentum has increased in our direction. So since Williams %R is currently at about -69, we want to see what price does on the daily close. The close below support as stated will trigger a breakout opportunity on the pair. No close below support triggers no trade!
The plan for the breakout should start with watching the daily close for today. If price is able to violate the support level at 138.774 then I would place a short entry with a SL at 139.550. Profit target you ask? Always look left for prior levels of support and resistance and use those levels as profit targets because the market normally likes to move to and from support levels. In this case I am looking at a long term target at 129.653. Remember, trees that are slow to grow bear the best fruit. This means take your time, be patient, plan your trade, know your signal and trigger and when it all comes together take the opportunity and it will bear good fruit as in pips. On the opposite, if you do not plan, break your entry rules and triggers then you usually end up with rotten fruit as in negative pips. God bless!