GBP/JPY (GJ) is currently approaching two key support levels at 189.554 and 189.200, where buying interest is expected to emerge. Based on technical analysis, price action suggests a long (buy) opportunity, targeting 189.900 as the next resistance level. This setup aligns with multiple confluences, including support rejections, trend analysis, and momentum indicators, making it a high-probability trade.
Key Technical Levels
Support Levels (Long Entry Points):
189.554 – First support level where buyers might step in.
189.200 – Stronger support zone, where price could see a solid bounce.
Target Resistance:
189.900 – Expected take-profit zone based on prior price action.
Technical Factors Supporting the Long Setup
1️⃣ Price Action & Market Structure
GBP/JPY remains in an overall bullish structure, with price retracing to a support zone before a potential continuation upwards.
Bullish rejection candles around 189.554 or 189.200 will confirm buyer dominance.
2️⃣ Fibonacci Retracement & Support Confluence
The 189.200 level aligns with a key Fibonacci retracement zone, reinforcing its significance as a strong support area.
Previous demand zones in this area indicate a higher probability of price bouncing back towards 189.900.
3️⃣ RSI & Momentum Indicators
RSI is near oversold conditions, signaling potential bullish reversal.
MACD shows weakening bearish momentum, increasing the probability of an upward move.
4️⃣ Volume & Order Flow Analysis
Increasing buying volume near support zones suggests that institutions and large traders may be accumulating long positions.
A bullish engulfing candle or a strong rejection at support will further validate the trade setup.
Key Technical Levels
Support Levels (Long Entry Points):
189.554 – First support level where buyers might step in.
189.200 – Stronger support zone, where price could see a solid bounce.
Target Resistance:
189.900 – Expected take-profit zone based on prior price action.
Technical Factors Supporting the Long Setup
1️⃣ Price Action & Market Structure
GBP/JPY remains in an overall bullish structure, with price retracing to a support zone before a potential continuation upwards.
Bullish rejection candles around 189.554 or 189.200 will confirm buyer dominance.
2️⃣ Fibonacci Retracement & Support Confluence
The 189.200 level aligns with a key Fibonacci retracement zone, reinforcing its significance as a strong support area.
Previous demand zones in this area indicate a higher probability of price bouncing back towards 189.900.
3️⃣ RSI & Momentum Indicators
RSI is near oversold conditions, signaling potential bullish reversal.
MACD shows weakening bearish momentum, increasing the probability of an upward move.
4️⃣ Volume & Order Flow Analysis
Increasing buying volume near support zones suggests that institutions and large traders may be accumulating long positions.
A bullish engulfing candle or a strong rejection at support will further validate the trade setup.
Trade closed: stop reached
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.