- GBP/JPY has been bullish on the H4 chart.
- The pair produced a strong bullish signal right at the SMA 30’s support earlier.
- The H1 chart is on consolidation.
- Intraday minor charts have been choppy looking for their direction.
GBP/JPY – Technical Analysis- H4 Chart
The chart shows that the price produced a double bottom at around 183.000. At the second bounce, it has produced a bullish engulfing candle. Since then, it has been heading towards the North in a hurry. The level should be considered as a confluence level since the SMA 30’s support is just right there as well. Thus, as expected, the buyers have taken the opportunity and pushed the price towards the upside.
As things stand, the price may continue its move and find its next resistance around 186.750.
On the downside, it does not look good for the sellers. They must wait for the chart to produce a bearish reversal pattern or a strong bearish momentum to look for short opportunities.
Price Action Analysis- H1 Chart
The chart shows that the price has been up trending by obeying a trend line. At the last bounce, it produced a morning star and headed towards the North with good momentum. On its way, it made a bullish breakout at 184.270. The level may play a significant part to determine its next trend. However, the trend line support may act as a support and push the price towards the upside.
Considering both charts, it seems that the bull is going to dominate in the pair. The sellers may not take trading decision based on the H4 and the H1 chart. The H1 chart may make a correction, but considering risk-reward, it may not be lucrative for the sellers to go short on the H1 chart.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn