GBPJPY recently broke out of its rising wedge pattern on the 1W timeframe and seems to have successfully re-tested the structure.
1W Analysis
Overall the pair can be seen within a descending triangle and can be seen around its resistance. Within the descending triangle there is also a rising wedge structure that the pair recently broke out of. The pair seems to have re-tested the wedge's support turned resistance along with the descending triangle's resistance before pulling back. The candle prior to the current week seems to have closed as an inverted hammer which was meant to indicate a potential upside to follow but the current week's candle seems to have been a bearish candle which might indicate that the inverted hammer failed. The current week's candle however seems to have gotten slightly rejected by the weekly support zone. The pair might attempt to re-test the zone and attempt to break it or it might head to retest the resistance of the descending triangle.
1D Analysis
The recently broke out of a symmetrical triangle structure but seems to have been rejected by a trend line support along with the 1W support zone. Friday's candle closed as a hammer which might indicate that the pair might push back upwards. Thursday's candle however closed as a doji which indicated indecision, so if the pair does push upwards due to Friday's candle then we can expect the pair to break back into the symmetrical triangle and then attempt to re-test the 1W descending triangle resistance. If the Friday's candle however fails to cause the pair to move upwards, we can then expect the pair to drop and re-test the 1W support zone and possibly break it.
4H Analysis
The pair recently broke out of a symmetrical triangle structure to the downside, it can also be seen within a descending parallel channel and the last candles close is right on its resistance. The resistance of the channel was tested by the last three candles of the pair, with the second last being a bearish spinning top and the last candle closing as a somewhat inverted hammer. If the pair fails to break the resistance we can then expect it to drop towards the support of the channel and the 4H support zone, if it successfully breaks both then we can expect a further sell-off, if the pair however gets rejected then we can expect it to re-test the channel's resistance and attempt to break it.
1H Analysis
The pair seems to have broken out of the descending broadening wedge structure but is still contained within the 4H descending parallel channel. The second last candle closed as a hanging man after its break of the descending broadening wedge structure, this might be an indication that the pair might fall back within the structure. The last candle closed as a bearish candle right on the descending broadening wedge structure which should serve as the sell confirmation, if the pair successfully breaks back into the descending broadening wedge structure we can expect it to drop towards the 4H support zone. However if it fails to break back into the descending broadening wedge structure then we can expect the pair to rally towards the support turned resistance of the 4H symmetrical triangle.
Conclusion
Monitor the pair on the 1H timeframe to see exactly what the pair does and how it coincides with the 4H and 1D in order to make an accurate trading decision.
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1W Analysis
Overall the pair can be seen within a descending triangle and can be seen around its resistance. Within the descending triangle there is also a rising wedge structure that the pair recently broke out of. The pair seems to have re-tested the wedge's support turned resistance along with the descending triangle's resistance before pulling back. The candle prior to the current week seems to have closed as an inverted hammer which was meant to indicate a potential upside to follow but the current week's candle seems to have been a bearish candle which might indicate that the inverted hammer failed. The current week's candle however seems to have gotten slightly rejected by the weekly support zone. The pair might attempt to re-test the zone and attempt to break it or it might head to retest the resistance of the descending triangle.
1D Analysis
The recently broke out of a symmetrical triangle structure but seems to have been rejected by a trend line support along with the 1W support zone. Friday's candle closed as a hammer which might indicate that the pair might push back upwards. Thursday's candle however closed as a doji which indicated indecision, so if the pair does push upwards due to Friday's candle then we can expect the pair to break back into the symmetrical triangle and then attempt to re-test the 1W descending triangle resistance. If the Friday's candle however fails to cause the pair to move upwards, we can then expect the pair to drop and re-test the 1W support zone and possibly break it.
4H Analysis
The pair recently broke out of a symmetrical triangle structure to the downside, it can also be seen within a descending parallel channel and the last candles close is right on its resistance. The resistance of the channel was tested by the last three candles of the pair, with the second last being a bearish spinning top and the last candle closing as a somewhat inverted hammer. If the pair fails to break the resistance we can then expect it to drop towards the support of the channel and the 4H support zone, if it successfully breaks both then we can expect a further sell-off, if the pair however gets rejected then we can expect it to re-test the channel's resistance and attempt to break it.
1H Analysis
The pair seems to have broken out of the descending broadening wedge structure but is still contained within the 4H descending parallel channel. The second last candle closed as a hanging man after its break of the descending broadening wedge structure, this might be an indication that the pair might fall back within the structure. The last candle closed as a bearish candle right on the descending broadening wedge structure which should serve as the sell confirmation, if the pair successfully breaks back into the descending broadening wedge structure we can expect it to drop towards the 4H support zone. However if it fails to break back into the descending broadening wedge structure then we can expect the pair to rally towards the support turned resistance of the 4H symmetrical triangle.
Conclusion
Monitor the pair on the 1H timeframe to see exactly what the pair does and how it coincides with the 4H and 1D in order to make an accurate trading decision.
If you liked this analysis make sure to give us a thumbs up, leave us a comment and make sure to follow us for future ideas 👍❤
