GBP/JPY: The Bull Seems to Have Taken Over

• GBP/JPY produced a double bottom at a significant support.
• The pair trades above simple moving average 30.
• The H1 chart looks good for the buyers.
• Intraday minor charts may make some bearish corrections.

GBP/JPY- Technical Analysis-H4 Chart

The H4 chart shows that the price produced a double bottom at 180.900 and made a breakout at the neckline. As of writing, the pair trades above simple moving average 30 as well. Thus, the buyers may wait for the price to consolidate and produce a bullish reversal pattern at the value area to go long in the pair. The price may find its next resistance around 183.275.

The chart shows that it has been bearish for a long time. Since it produced a double bottom followed by a neckline breakout, the buyers may make full use of it. Most probably, the pair make a long bullish move from  here if it breaches 183.275.

On the downside, if the pair makes a breakout at the last swing low, it may make a new lower low and remain bearish for a while. As things stand, it is very less likely to happen.

Price Action Analysis- H1 Chart

The chart shows that upon finding its support, it produced a bullish engulfing candle and headed towards the North in a hurry. It has had a rejection around 182.315 and produced a bearish engulfing candle. However, the next candle closed as a spinning top. If the current candle closes as a bullish candle, the buyers may push the price towards the North. The price may find its next resistance around 182.715.

On the downside, if the price breaches 181.950, it may consolidate around that level making it consolidation’s resistance. However, it does not look like that the sellers would be interested to go short in the pair on this chart.

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

Contact and follow Tareq on Twitter: @tareqfpn