- GBP/JPY has been heading towards the North upon consolidating at 186.200.
- The pair trades above the SMA 30 on the H4 chart.
- The H1 chart looks bullish trading above yesterday’s high.
- Intraday minor charts have been bullish.
GBP/JPY – Technical Analysis- H4 Chart
The chart shows that the price breached the SMA 30 and traded above it. It produced a hanging man confirming the breakout. Since then, the price has been heading towards the upside with good momentum. The buyers will be very keen to go long in the pair and push the price towards the North. The price may find its resistance around 188.700.
On the downside, if the price finds its resistance and breaches the SMA 30’s support, it may head towards the South and find its support around 185.200. The level of 187.600 has potential to work as a horizontal resistance since the price had a strong rejection at this level earlier.
Price Action Analysis- H1 Chart
The chart shows that the price has been heading towards the North with moderate pace. It may find its next resistance around 187.700. The buyers will be eagerly waiting for the price to make a breach at the level to go long and push the price towards the upside. The price may find its resistance around 188.000.
On the contrary, the sellers will be waiting for the chart to produce a bearish reversal signal at the horizontal resistance to go short in the pair. It means traders on both sides will be eyeing on the price action around the level of 187.200.
Both charts look good for the buyers with a hinder at the zone 187.600-187.700.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn