[GBPJPY] Buy Limit - 03/09/2022 - London Session
Monthly & Weekly: On the monthly timeframe we don’t really see any clear trend. There was a trendline that was broken, so it’s safe to say that anything over this trendline is bullish, however we are stopped by the monthly resistance zone that has been respect for the past 4 years. I have noticed that the resistance zone also falls in the same place as the monthly key level and has continued to be rejected. It’s safe to say that this market will continue to fall into either the next monthly key level or the weekly support zone. There was also slight divergence which was acted upon as the price fell from the resistance zone. My bias here is bearish.
Daily: This is a little bit more interesting now, because from the last high to the last low before the retracement, we had a 38.2 retracement which means that market would continue to the -27, which it is currently at as we speak. This -27 zone is also a monthly key level. Hmmmm. We don’t have any divergence which would be our indicator that the market is retracing, but we do have a -27 and a monthly key level being rejected off of so some reversal is expected. My bias here is bullish.
4H & Lower: You can’t get too detailed on this timeframe so we will combine the 4H with the lower timeframes as well. Price has been consolidating around this zone for about a week and is showing bullish momentum. On the hour we can see a clear trendline being formed with some support at the .50 zone. So we can expect a target at the -27. There has also been some resistance formed and support formed at the 38.2 zone. We are looking to get the best entry possible so on a smaller timeframe we can notice that within that support and resistance zone there were lower lows formed with a 78.6 zone. We know that the 78.6 means that it will eventually sell to the -61.8 so that is where we have made our entry, which would also be a retest of the trendline. But a 38.2 retracement also means that it should push sharply to the -27 however it has not done that. So either it will come down and retest the trendline or it will break the resistance zone and continue to the -27. My bias here is bearish, until entry where we will finish the bullish momentum.
Daily: This is a little bit more interesting now, because from the last high to the last low before the retracement, we had a 38.2 retracement which means that market would continue to the -27, which it is currently at as we speak. This -27 zone is also a monthly key level. Hmmmm. We don’t have any divergence which would be our indicator that the market is retracing, but we do have a -27 and a monthly key level being rejected off of so some reversal is expected. My bias here is bullish.
4H & Lower: You can’t get too detailed on this timeframe so we will combine the 4H with the lower timeframes as well. Price has been consolidating around this zone for about a week and is showing bullish momentum. On the hour we can see a clear trendline being formed with some support at the .50 zone. So we can expect a target at the -27. There has also been some resistance formed and support formed at the 38.2 zone. We are looking to get the best entry possible so on a smaller timeframe we can notice that within that support and resistance zone there were lower lows formed with a 78.6 zone. We know that the 78.6 means that it will eventually sell to the -61.8 so that is where we have made our entry, which would also be a retest of the trendline. But a 38.2 retracement also means that it should push sharply to the -27 however it has not done that. So either it will come down and retest the trendline or it will break the resistance zone and continue to the -27. My bias here is bearish, until entry where we will finish the bullish momentum.