Gbpjpy has been drastically sliding lately. For an intraday/swing setup for Monday, we will analyze H4.

- Market structure: The H4 market structure turned bearish after the support was breached at 152.50. Although GBPJPY is forming LH’s and LL’s, it should be noted we still remain within the previous low. Until that’s breached, we might be able to plan a buy setup.

- Trendline: The descending trendline was testing once before and extended further. For the long position, the touch on trendline would be our potential profit targets.

Currently, GBPJPY is moving within descending trendline. We will wait for the market to tap the lower support descending trendline. Once its tested, our buy position will be triggered till the major descending trendline.

- Retracement: 151.25 is the price which rests on the 75-78.5% golden retracement area. Although the support doesn’t completely overlap with the retracement, it’s a little below the levels. We will wait for market to tap into the support and close back in the retracement region to go long. With retracement, we will have an added confirmation to go long along with the support.

- EMA's: We will be taking a corrective position in this current scenario of GBPJPY. EMA’s currently depict bearish trend on the pair, but on the higher timeframes, both EMA’s are reflecting a bullish bias. We anticipate market retesting or breaking the EMA 50 once it taps our buy setup price.

- RSI/CCI: Both oscillators are bearish. RSI representing the 34 level region and CCI -135 level region respectively. The over-sold conditions are little below where the oscillators currently stand. Anticipation is, when market has reached the targeted support, we might witness the oscillators being in over-sold area. Hence, an added confirmation would present itself for buys. Also, a divergence in lower time frames can be formed.

If the support as shown on the chart is breached, we will look for further decline in the pair and buy at a more premium level. Trade setup is invalidated once the support is broken.

GBPJPY potential longs from 151.25

Jul 18 2021

1