Hey guys, wanted to share this with you. GBPJPY is approaching a few resistances that could lead to a drop soon.
On the chart you can see there is a major trend line in red that the price is getting very close to. This trend line is drawn from around 195.200 (August 2015) down to about 156.600 (February 2018) and onwards. Price has been unable to break past this trend line since February of this year so let's see if it holds the price down again.
The price is also getting close to the blue resistance trend line.
Additionally, we see resistance at the 0.5 Fibonacci level. We can also see resistance formed from the 200MA on the daily time frame.
On top of this, we are seeing some bearish divergences on the 6hr time frame. Look below, we can see bearish divergences formed on the RSI, CMF, and CCI. This should give us early indication of bullish momentum weakening.
My first target for this short is at the 0.618 fib level but ultimately my final target is just above the 0.786 Fib level around 143.950.
Thanks for reading and if you found this analysis useful please give it a thumbs up!
On the chart you can see there is a major trend line in red that the price is getting very close to. This trend line is drawn from around 195.200 (August 2015) down to about 156.600 (February 2018) and onwards. Price has been unable to break past this trend line since February of this year so let's see if it holds the price down again.
The price is also getting close to the blue resistance trend line.
Additionally, we see resistance at the 0.5 Fibonacci level. We can also see resistance formed from the 200MA on the daily time frame.
On top of this, we are seeing some bearish divergences on the 6hr time frame. Look below, we can see bearish divergences formed on the RSI, CMF, and CCI. This should give us early indication of bullish momentum weakening.
My first target for this short is at the 0.618 fib level but ultimately my final target is just above the 0.786 Fib level around 143.950.
Thanks for reading and if you found this analysis useful please give it a thumbs up!
Trade closed: target reached
Target hit perfectly! Took quite awhile for the drop to come but once it broke it didn't take long to reach the 0.786 fib level. Looks like that was just at the right time to exit the short trade too as we saw a big move up afterwards. Hope you guys enjoyed this one :)
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.