GBPJPY | Perspective for the new week | follow-up detailsThe price moved exactly 400pips in our direction since my last publication (see link below for reference purposes) to set the tone for bearish momentum. In the last week, and with the appearance of a double top pattern; the Pound appears to have found the crucial resistance at JY158 to incite a second downward spiral. The JY158 area already stopped buyers in October 2021 and January 2022. The JY157 area also stopped buyers during the course of last week trading session to signal a bearish momentum.
Tendency: Downtrend (Bearish)
Structure: Breakdown | Supply & Demand | Trendline | Reversal pattern (Double Bottom) | Descending Channel
Observation: i. Despite an overall bullish momentum on this pair (see weekly time frame); the JY157 area has been resisting price action since October 2021 to reveal a bearish tendency at this juncture in the market.
ii. Since testing the JY158 area on the 10th of February 2022, price action has continued to find lower highs which culminated in a breakdown of Key level (JY156.450) at the beginning of last week trading session.
iii. This development gave rise to multiple rejections of the JY157 area to make this area our new supply zone for future selling opportunities.
iv. It is important that we put into consideration that the multiple rejections of the JY157 area share a confluence with the bearish trendline that has been guiding price action since the 10th of February 2022.
v. In this regard, I shall be looking to take a sell position below the key level identified at JY156.450 with an opportunity to add to my existing position at a breakdown/retest of the JY155.450 area in the coming week(s).
vi. Mind you, the early hours/days of the new week might see a price climb to test our new supply zone around the JY157 area to incite further decline... Trade consciously!😊
Trading plan: SELL confirmation with a minimum potential profit of 200 pips.
Risk/Reward : 1:4
Potential Duration: 3 to 7days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
