GBPJPY has been on a bull run on the Monthly for the past 3 months. The long wick for this month's candlestick seemed to speculate that GBPJPY is losing it's bull momentum but GBPJPY just needed some space to breathe before continuing to the upside.
In the Daily, it broke out of the consolidation range of 138.8 to 141.5 and proceeded upwards, creating higher highs at levels 147.9, psychological level 148.0. It pulled back down into 141.18 and the current weekly candlestick's long bottom wick suggests that it does not have a strong bearish momentum. Having retested the box's upper region of 141.5 and pulled back up, this suggested that GBPJPY could only go long from there. Another confluence to add to our judgement is that the MA and the EMA have crossed path after the bearish move since making higher highs, this validates our judgement of a continuation to the upside. It also formed a nice 3 pin formation during the reversal.
Currently, I am looking at GBPJPY moving forward to retest the recent resistance level of 143.6. If the 4 hourly candlestick does closes above that level, I expect a clean upside move into the Fib's region of 61.8% to 76.8% depending on the bullish momentum. If it does not close above 143.6, I am expecting GBPJPY to continue consolidating around the range 142.4 to 143.6.
I have placed a long trade in GBPJPY. My current take profit level is 144.0. A support turned resistance level from the previous candlesticks, and also a psychological level. However, I am confident that GBPJPY will be able to the break the level 143.6 into making new higher highs within the 61.8% to 78.6% range and continue its weekly bullish momentum
In the Daily, it broke out of the consolidation range of 138.8 to 141.5 and proceeded upwards, creating higher highs at levels 147.9, psychological level 148.0. It pulled back down into 141.18 and the current weekly candlestick's long bottom wick suggests that it does not have a strong bearish momentum. Having retested the box's upper region of 141.5 and pulled back up, this suggested that GBPJPY could only go long from there. Another confluence to add to our judgement is that the MA and the EMA have crossed path after the bearish move since making higher highs, this validates our judgement of a continuation to the upside. It also formed a nice 3 pin formation during the reversal.
Currently, I am looking at GBPJPY moving forward to retest the recent resistance level of 143.6. If the 4 hourly candlestick does closes above that level, I expect a clean upside move into the Fib's region of 61.8% to 76.8% depending on the bullish momentum. If it does not close above 143.6, I am expecting GBPJPY to continue consolidating around the range 142.4 to 143.6.
I have placed a long trade in GBPJPY. My current take profit level is 144.0. A support turned resistance level from the previous candlesticks, and also a psychological level. However, I am confident that GBPJPY will be able to the break the level 143.6 into making new higher highs within the 61.8% to 78.6% range and continue its weekly bullish momentum
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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.