GBPJPY's final candle for the week was a text book shooting star which usually suggests more downside to come. This chart is interesting as GBPJPY lies at the end of a clear flag formation but at the bottom of the flag the usually supportive 200 day moving average sits. The TDI on H4 and H1 are BEARISH so it will be a surprise if we don't head lower at the start...
Confluence of previous support turned resistance with retest and second line of resistance with confirmation of bearish reversal also close to the .618 line so going to enter short when the market opens with potential gain of 250 pips just above the previous low of 136.348gb
Rejected by .618 line and still shows signs on resuming bearish trend on higher time frames so re-entry at 139.361 level with stop loss just above .618 line @ 139.701 level with tp at roughly 138.425 with potential to carry on dropping to 1.27 extension of 137.523
GBP/JPY made 80 pips last week and technically looks BULLISH whilst we remain above the 200 sma. Above 140.42 takes the price above the descending trend line shown and opens up a move to 148.56.
Below the 200 sma at 140.42 opens a move down to retest 136.37.
BUY above 140.42
SELL below 139.70
Resistance at 141.06 mat present a SHORT opportunity.
As shown by my recent trade setup (Linked to this idea), price broke out of a wedge and is now retesting the lower trendline. There is a key area of resistance that price has not broken yet (shown by the blue box), key fib retracement levels can also be found in the same zone, the lower trendline also falls within this resistance zone and finally there is a double...
Potential short with GBP/JPY. Recently price has been trading in a wedge range. The support has been broken, re-tested and looks prime for a short. Before entry I need further confirmation from an EMA(8) and SMA(21) cross-over. My target (1) will be the next area of support at the weekly support 136.500.
This pair has tested the 0.236 fib support and I now believe it is on its way to 0.618 resistance which also meets the major trendline. I have put SL just below the 0.236 support just in case price re-tests. I have also marked when news is coming out which may affect the GBP. Therefore, I will watch this trade very closely.
Posting this one a bit late. Opened a short on the second test of 61.8% which lined up perfectly with the 4H trend line. Targeting 139.750 but will most probably see it come much lower. Second target of 139.000.