It then formed a sideways channel bouncing off both our new up until the 5th April. From the 5th April, an upwards channel was formed, buyers were still buying into the pair pushing it at a newer high of 135.750
Since the 9th April, the 4H chart is clearly showing that the momentum of the pair has now started to slow down forming yet another sideways channel, indicating and confirming to us that not much price movement is happening and that not many buyers or sellers are jumping into the market and are probably waiting on more confirmation to either sell or buy the currency pair.
Momentum has now slowed right down and the sideways channel’s support (134.572) has been broke, which has now started a reversal movement. As you can see from the chart, on the 15th April sellers started to come in, pushing the price movement down and creating a new support line @ 133.696. From the 15th April to the 17th April, Friday evening the have started to form a Symmetrical Triangle which could indicate a Movement.
My entry to go Short on this pair will be after the new support line has been broken and a strong movement is in place. My Stop Loss will be set at around 134.993 and I will have 3 TP zones. 1TP – 132.529 , 2TP – 131.489 & 3TP – 128.380.
** PLEASE NOTE ** - THIS IS MY OWN ANALYSIS ON THE GBP/JPY PAIR.
Waiting on the markets to open so I can get a better understanding on where it is heading. If price breaks out above 134.993 then this could most possibly suggest that the trade is actually going Long instead of short. I shall wait for the markets to move a little before placing anything but if price falls below 133.617 I will be looking to go Short as planned.