Andrew Keene, CEO with Alpha Shark Trading looks at the GBPJPY today for potential trade opportunities in the forex markets. Using the Ichimoku Cloud Triple Confirmation of multiple time frames he identifies that the hourly confirmation is slightly bearish but the 4hour, the one day and the two day time frames all reflecting bullish confirmations. Seeing that the GBPJPY is under the cloud on the shorter time frame, he sees this as a market consolidation looking for the market to bounce and go higher between now and the end of the week.
Using binary options as an alternative trade, he looks at using the GBPJPY weekly binary options and goes over a number of trade choices depending on your particular market view.
With the GBPJPY currently trading around 15059, if you thought the market was going to just hang out here and slightly move higher you could consider the 15125 binary strike by risking 40 to make 60 which is 150% ROI (fees not included)
If you think that the market lows are in and not going to test the recent support level, you could consider the 14925 binary strike by risking 84 to make 16 which is a lower ROI of 19% (fees not included)
However if you thought the market was really going to pop between now and the end of the week then you might consider the 15225 binary strike where you would be risking 21 to make 79 which is a 376% ROI ( fees not included)
There are lots of strike choices available where you can pick risk reward scenario that best fits your risk tolerance given your market bias