With key support at 136.75 broken and price now trading under the 200 sma on the Daily, more weakness in G/J is likely. The rising trendline shown, which comes in at 134.76 may offer support but this seems unlikely. Adding to the BEARISH technical picture are political tensions over North Korea and Syria/Russia which will lead to investors seeking out the safety...
We are SHORT this pair from 136.69 and 136.55.
The key support level at 136.45 has broken and although price is now bouncing off WS1 support at 136.40 we think this pullback will be short lived and GBP/JPY looks on the edge of collapse down to 134.00
In my assessment of GBPUSD I paint quite a gloomy picture for GBP BULLS and with GBP/JPY sitting on top of the critical 200 sma on the daily time frame, this pair is poised to either sink or swim.
The RSI is BEARISH as is the TDI on H4 but the D1 TDI is more mixed as we have a squeeze and its unclear which way we are going to break. Should the RSI line head for...
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...
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.
another analysis today that i want to share with you. Here we are on GBPJPY and you can see that we are up against a previous daily structure level on the left hand side of your screen.
In cases like this i start looking for some shorting opportunities in lower timeframes, such as 4hr chart. On the right hand side of the screen you can see price is right...
Daily momentum down
1H momentum down
1H trend line rejection
Round number 142.00 rejection
Price break low and re-tested with pinbar
Entering trade at the breaking the low of the pin bar
R1 pivot rejection
Order triggered on gj after a strong support, trend line , neckline break. We decided not to enter on the right shoulder at 50% as we checked back in history and found the 142.500 area (highlighted in grey) a bit risky to trade above it so we took a more conservative approach and set the order underneath where we had a lot of space for the market to drop into if...