GBP/JPY - market providing opportunity to sell? Or bear trap?
GBP/JPY has been pushing higher since the start of July. Last week price ran into a weekly descending resistance zone, where bullish momentum faltered and even reversed during trading on Friday. The first day of the trading week, yesterday, was also a bearish day, which we are interpreting that bears have entered the market.
As price is pushing higher again in the early hours of the trading today, the market may be providing another chance to enter the market short. If bearish momentum continues on the lower time frames later in the day we will be looking for a short entry. This bearish sentiment may only be enough to push the price back to daily ascending trend line support and the support of the 50 and 100 DAY moving averages so take profits will likely be at approx. 137.4.
This analysis will be invalidated if the price holds and closes above the weekly resistance zone and the last higher high.
As price is pushing higher again in the early hours of the trading today, the market may be providing another chance to enter the market short. If bearish momentum continues on the lower time frames later in the day we will be looking for a short entry. This bearish sentiment may only be enough to push the price back to daily ascending trend line support and the support of the 50 and 100 DAY moving averages so take profits will likely be at approx. 137.4.
This analysis will be invalidated if the price holds and closes above the weekly resistance zone and the last higher high.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.