Before we jumpstart this baby, let me remind all of y'all to read my introductory post on Cyclopip's Weekly Winner to familiarize yourselves with my trading framework.

Done reading? Awesome. Let's get this sucker rollin'!

March 28 - April 1, 2011: GBP/JPY Price Action Review

The pair started the week out quite inactive, staying within a 70-pip range between 131.00 and 130.20. Apparently, Irish debt concerns were responsible for keeping the pound grounded early in the week since U.K. banks have large Irish debt holdings.

Mid-Tuesday is when GBP/JPY bust out of its little range like a jailbird breaking out of prison! Thanks in part to an upward revision to its Q4 GDP, the pair headed for higher ground and never looked back.

Broad yen weakness also had a lot to do with the one-directional move as the yen saw big losses across the boards last week. Need I remind you of that big breakout on EUR/JPY?

The yen's sharp depreciation, which began midweek, can be traced to USD/JPY's steep climb on dovish words from Fed member Bullard, who said that the Fed may tighten monetary policy soon. BULLard's words were BULLish (Hah!) for USD/JPY and this spilled over onto the yen crosses. Now, if you had done your currency correlation analysis, you would've been able to capitalize on this!

Anyway, this propelled GBP/JPY higher for the rest of the week. For a moment, when the pair was consolidating above the PWH, it looked as though the bulls were done buying GBP/JPY. But it eventually continued its uptrend on Friday, in spite of weak U.K. manufacturing PMI data.

We actually could've caught this big move as early as Monday. After bouncing off the 131.00 major psychological handle, the pair found support at the WO. Going long then and there, at around 130.30, while adding to our position and moving our stop every 100 pips would have allowed us to stay in the move the entire way up!

If we had closed all our positions right before the week came to an end, we would have capped our reward-risk ratio at a whopping 15:1! Makes my mouth water just thinking about it!

Alternatively, we could have entered more conservatively, after the break of 131.00. Doing so while employing the same 100/1/1 stop-trail-add strategy would have yielded an more conservative, but still wicked-sick return-on-risk of 9:1.

See fellas? This just goes to show that there's big money to be made every week! We just need to go out there and find the best setups. Hopefully, with deliberate practice, we can learn to capitalize on such setups in the future and find ourselves "laughing straight to the bank" as 50 Cent would say!

With both the ECB and BOE having interest rate decisions this week, we might just have the catalysts we need to catch the next 10-banger! You can also follow me on Twitter or MeetPips.com to find out how I plan to trade around those two events.

Hasta la vista baby!