- GBP/JPY trades below the SMA 30 on the H4 chart.
- The pair is now on consolidation finding its resistance at a horizontal level.
- The H1 chart is on consolidation, yet to find its direction.
- Intraday minor charts have been choppy.
GBP/JPY – Technical Analysis- H4 Chart
The chart shows that the price made a long bullish move on the H4 chart earlier. It found its resistance around 189.000 and made a little bearish move. However, on its way, it breached the simple moving average 30’s support. It is very significant since it may keep the buyers away for a while. Thus, the sellers may look to go short from the value areas and drive the price towards the South. As of writing, the pair trades around 187.800. The SMA 30’s resistance is not far away. If the sellers find the SMA 30 works as a resistance as well and make it a confluence level, then the bear may make a move from there.
On the contrary, the buyers must wait for the price to breach the SMA 30’s resistance to look for long opportunities.
Price Action Analysis- H1 Chart
The chart shows that the price has been roaming around an equidistant channel with a bit of adjustment. It had a bounce at the channel’s support and produced a Morning Star. However, the price does not continue its move towards the North. The sellers are going to wait for the price to go towards the channel’s resistance and give them a bearish signal to go short.
Despite producing a strong bullish signal, buyers do not look that interested to push the price. It may have been for the space left for the bull to cover. Minor charts traders may be interested to look for long opportunities. It means the pair may get sluggish if it continues its bullish move.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn