GBPJPY - Correction before further upside
GBPJPY is in a previous strong weekly resistance zone at the moment. This zone has been in play since 2017 and the last attempt bounced strongly off it.
We're now revisiting after breaking out of a rising channel and given we haven't had a correction yet (and the price is relatively far away from the EMA), I can see a move back down to 144.57 (the nearest support from March).
If that level doesn't hold, I can see it moving down to ~142.5 before bouncing and breaking the weekly resistance for a bigger move higher.
Stop placement is tricky, as we could easily see a liquidity grab above equal highs before we go lower. I'd therefore say a wide stop is preferable here.
TP: 144.57 or 142.5
Stop: 149.702
Happy trading!
P.S. vague harmonic patterns and wave theory etc confuses me. I prefer S/R, trend lines and fibs. If this appeals to you too, press the follow button for more:)
We're now revisiting after breaking out of a rising channel and given we haven't had a correction yet (and the price is relatively far away from the EMA), I can see a move back down to 144.57 (the nearest support from March).
If that level doesn't hold, I can see it moving down to ~142.5 before bouncing and breaking the weekly resistance for a bigger move higher.
Stop placement is tricky, as we could easily see a liquidity grab above equal highs before we go lower. I'd therefore say a wide stop is preferable here.
TP: 144.57 or 142.5
Stop: 149.702
Happy trading!
P.S. vague harmonic patterns and wave theory etc confuses me. I prefer S/R, trend lines and fibs. If this appeals to you too, press the follow button for more:)
Comment:
Stronger winds prevail. Will post a new idea soon.