GBP/JPY: Bull Heads towards the North

• GBP/JPY made a significant bullish move on the H4 chart.
• The SMA 30 has been working as a support.
• The H1 chart looks bullish approaching at a pivotal resistance.
• Intraday minor charts have been bullish.

GBP/JPY – Technical Analysis- H4 chart

The chart shows that the price found its support at 179.000 and made a strong bullish move. On its way, it made a breakout at the simple moving average 30. As of writing, the pair trades well above the SMA 30’s support. However, the level of 182.150 may work as a resistance. The buyers may wait for the price to make a breakout at the level. A breakout at this level may push the price towards the North further with strong momentum. The price may find its next resistance around 184.000.

The sellers, on the other hand, may wait for the price to produce a strong bearish reversal pattern to look for short opportunities.

Price Action Analysis- H1 Chart

The chart shows that the price has been obeying a trend line and heading towards the North. At the last bearish correction, it produced a bullish engulfing candle. Upon producing that candle, the price has been heading towards the upside in a hurry. The buyers may wait for the price to consolidate and produce a bullish signal to add more long positions. If it makes a long bearish correction, the trend line’s support may come into play to offer long entries to the buyers.

Both charts look good to move towards the North. Thus, the sellers may skip this pair to take any trading decision based on the H4 and H1 chart for the time being.

Written by: Md Tareq Sikder, Senior Analyst Forex Prop News

Contact and follow Tareq on Twitter: @tareqfpn