Jai30

GBPJPY Short - Possibility of 400 pips to the downside

Short
FX:GBPJPY   British Pound / Japanese Yen
A top down approach on this pair starting from the weekly timeframe shows some manipulation over the past 4 weeks. Bullish and Bearish over with no real advancing movement. The price has closed bearish on the weekly again after being rejected from the weekly resistance. The daily shows a bearish candle with a long lower wick but no where near being a pin bar followed by a bullish doji /spinningtop signalling indecision. The weekly EMA and MA are about to cross with the EMA on the bottom and the Daily already has.

Before we get onto the 4H timeframe, it is important to note that this pair is in an overall downtrend and has been for some time. It has recently tried to break out of the down trend these past few weeks and has now closed back below the descending trend line resistance and on the 4H time frame; a falling 3 formation has occurred after a bearish move signalling bearish continuation. A bearish engulfing candle formed after the falling 3 formation and now some smaller candles have moved the market sideways with longer upper wicks showing rejection from the descending trend line resistance with little lower wicks showing the upper prices and resistance are being rejected in anticipation for a fall.

First target for this pair is 143.500, the second target is 142.000 and the final target in this analysis is 141.000 without looking at further downside potential. Of course any trade taken on this will be based on the above and the actual price action of the pair and with other areas of confluence. For the next coming week, it doesn't appear that GBP has any major news announcements on the economic calander either. Best of luck.

Any thoughts and opinions are welcomed. Thanks again
Comment: Possible 3rd Spike at 146.500 level where I would look for the drop it price to occur, may even hit 147.000 before falling.
Comment: Not what I was looking for haha to be expected every now and then no problems.

Comments

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