- GBP/JPY seems to have found its horizontal support.
- The pair trades below the simple moving average 30.
- The H1chart looks bullish.
- Intraday minor charts have been bullish in the New York session.
GBP/JPY- Technical Analysis-H4 Chart
The chart shows that the price had multiple bounces at 181.150. At the last bounce, it produced a doji candle. The next candle closed as a bullish engulfing one. The buyers may keep their eyes on the pair if the price breached the simple moving average 30’s resistance. The price may find its next resistance around 183.700.
On the other hand, if the price braches the horizontal support, the sellers may wait for the price to confirm the breakout followed by a bearish reversal pattern to go short in the pair. The price may find its support around 180.000.
Price Action Analysis- H1 Chart
The chart shows that the price has been down trending by obeying a bearish trend line. Upon having a bounce at 181.150, it made a bullish move. The price then came down and produced a bullish engulfing candle at a horizontal support. The next candle breached the trend line’s resistance. As of writing, the pair trades above that trend line’s resistance. Thus, the buyers may wait for the price to find its support at the broken trend line. If it works as a support, the buyers may push the price towards the North. The price may find its resistance around 162.400.
Considering both charts, it seems that traders are to be careful before making any trading decision in the pair. However, the bull seems to be one-step ahead since the H1 chart makes a significant bullish breakout.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn