This 4-hour chart of GBP/JPY shows a bullish continuation bias, supported by market structure and key technical levels. Here’s a breakdown of the analysis:
Technical Breakdown
1. Trendline Support:
The ascending trendline has been respected multiple times (green arrows), indicating a strong uptrend.
The most recent test near 191.60 shows price reacting positively, aligning with a possible continuation.
2. EMAs:
EMA(9) and EMA(21) are sloping upwards.
Price is currently hovering around the EMAs, hinting at a potential bounce from dynamic support.
3. Fibonacci Retracement Levels:
Pullback has landed between:
0.382 (~192.13)
0.618 (~192.44)
These levels overlap with a "Daily Supply Turned Demand" zone, making it a strong confluence for a bullish reaction.
4. Support/Resistance Zones:
Daily Support Turned Demand: ~191.70
Daily Resistance: ~193.75
Next Major Target: ~195.77 (1.618 fib extension and Daily Resistance)
📈 Projected Move (Blue Arrow Path):
Price may bounce from the current demand zone (around 191.60–192.40).
Potential upside target is 195.77, assuming price breaks above 193.75 with momentum.
A failure to hold above the trendline and 191.60 zone could shift the bias short, possibly targeting 190.33.
✅ Summary:
The chart favors bullish continuation as long as price respects the ascending trendline and the ~191.60 support area. Entry near this zone with confirmation offers a good risk-to-reward opportunity toward 195.77.
Technical Breakdown
1. Trendline Support:
The ascending trendline has been respected multiple times (green arrows), indicating a strong uptrend.
The most recent test near 191.60 shows price reacting positively, aligning with a possible continuation.
2. EMAs:
EMA(9) and EMA(21) are sloping upwards.
Price is currently hovering around the EMAs, hinting at a potential bounce from dynamic support.
3. Fibonacci Retracement Levels:
Pullback has landed between:
0.382 (~192.13)
0.618 (~192.44)
These levels overlap with a "Daily Supply Turned Demand" zone, making it a strong confluence for a bullish reaction.
4. Support/Resistance Zones:
Daily Support Turned Demand: ~191.70
Daily Resistance: ~193.75
Next Major Target: ~195.77 (1.618 fib extension and Daily Resistance)
📈 Projected Move (Blue Arrow Path):
Price may bounce from the current demand zone (around 191.60–192.40).
Potential upside target is 195.77, assuming price breaks above 193.75 with momentum.
A failure to hold above the trendline and 191.60 zone could shift the bias short, possibly targeting 190.33.
✅ Summary:
The chart favors bullish continuation as long as price respects the ascending trendline and the ~191.60 support area. Entry near this zone with confirmation offers a good risk-to-reward opportunity toward 195.77.
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.
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.