GBPJPY: Bounce or Break?
Daily Time Frame: Reading price action we can see that GPBJPY has been bullish since price created a double bottom at 112.000 key support. As price approached 139-140.000 key resistance, we can see that price started to slow down by showing long wicks to the upside and indecision candles. After the double daily pinbars created last week, price reacted to the downside. Right now, we have a potential bounce or break situation!
4hr Time Frame: Scaling down we can see price is creating double bottom at previous swing lows. If price manages to hold above this zone 137.750, we can potentially see short term buys back to previous swing highs at 139.000 and if we break and retest above, we can potentially see price go even higher. However, if it breaks below 137.750, we can anticipate short term pullbacks to previous swing highs at 136.500. Due to the uncertainty of market fluidity, risk management is highly recommended.
4hr Time Frame: Scaling down we can see price is creating double bottom at previous swing lows. If price manages to hold above this zone 137.750, we can potentially see short term buys back to previous swing highs at 139.000 and if we break and retest above, we can potentially see price go even higher. However, if it breaks below 137.750, we can anticipate short term pullbacks to previous swing highs at 136.500. Due to the uncertainty of market fluidity, risk management is highly recommended.
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