GBPJPY WAVE ANALYSIS (FULL PICTURE) | PRICE NEAR RESISTANCE
Following the price action closely it can be elucidated that it has been forming chart patterns and waves. The current impulsive bullish movement started from the head of the inverted head and shoulder at point C (price level of about 158.5), completed a double bottom in the channel and price is currently approaching the October 2022 high at about 172.10.
I expect this resistance to hold at a high probability based on the following reasons:
1. RSI is overbought in 1H, 2H, 4H and 1D
2. Price is currently completing wave 5 and would need to make some correction
3. This price level has been a strong resistance in the past
4. Rumours of Ueda's (BOJ chairman) forward guidance considering stopping the ultra easy monetary policy could be floating in the news.
If this resistance holds, I expect price to correct back to the 165.5 region (wave 4) before making any further up movement.
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I expect this resistance to hold at a high probability based on the following reasons:
1. RSI is overbought in 1H, 2H, 4H and 1D
2. Price is currently completing wave 5 and would need to make some correction
3. This price level has been a strong resistance in the past
4. Rumours of Ueda's (BOJ chairman) forward guidance considering stopping the ultra easy monetary policy could be floating in the news.
If this resistance holds, I expect price to correct back to the 165.5 region (wave 4) before making any further up movement.
If you like these analysis, please like and following. I will be starting weekly videos soon.