Market NewsTechnical Analysis

GBP/JPY: The Bull Pauses for a While; Getting Ready to Make another Move

  • The price has been heading towards the upside with good momentum
  • Trades above higher high since 2016
  • The H1 chart had a rejection at yesterday’s high
  • The price in search of  a support on the H1 chart
GBP/JPY H4 Chart
GBP/JPY H4 Chart

GBP/JPY Trades above Higher High in Seven Years

GBP/JPY pair has been extremely bullish in the H4 chart. It found its horizontal support around 176.350 and made a bullish move. On its way, it made a breakout at Simple Moving Average 30. Afterwards, it had a bearish correction and made a false bearish breakout at SMA 30. Upon producing a Double Bottom, it has been heading towards the North with strong bullish momentum. The pair had a bullish day yesterday as well. As of writing, the price is in consolidation. A bullish reversal candle may attract the buyers to go long again above 186.430. The price may find its next resistance around 191.150.

GBP/JPY H1 Chart
GBP/JPY H1 Chart

The H1 Chart May Make a Bearish Correction

The price has been bullish on the H1 chart. However, the pair produced a strong bearish candle right at yesterday’s higher high. The level of 186.090 has been working as a support. If the price makes a bearish breakout at the support, the pair may make a bearish correction to find its next support. Even a bearish breakout may not generate enough bearish momentum because all the major charts are very bullish. The price may find its next support around 185.200. A bullish reversal pattern at that area may push the price towards 188.180.

The H4 chart looks bullish as mentioned several times. The buyers may wait for the price to produce bullish reversal to go long from value areas. The H1 chart slightly looks bearish or neutral-bearish. Considering both charts, it is very evident that the buyers keep this pair on their watch list to go long and push the price towards the upside.

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

Contact and follow Tareq on Twitter: @tareqfpn

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