Pound/Yen has met the targeted destination according to our previously published analysis on 9th July. From any aspect of observation of the current market structure - satisfies both the criterias of a bearish impulsive run as well a higher degree of deeper correction. Both of the structures have completed at our targeted destination i.e 148.60, a major support and high in demand zone. GBPJPY jad completed its 5 wave bullish impulsive run at 156.0 with a divergence being formed as well and the pair was bound to revert its momentum towards a deeper correction. The first major support was broken at 153.50 followed by 151.0 price action which indicated that the pairs next stop would be 148.60. This brought the RSI under H4 time frame into oversold conditions while in daily its still roaming just above 30.0. MACD is also portraying that the bearish momentum will be taken over by the bulls on intra day time frames on a short note until our upper trend line of the bearish channel is broken.

BULLISH AND BEARISH POSSIBILITIES/ CONDITIONS :

We are strong bullish on GBPJPY because of the EMA200 and major fibbonacci levels supporting a hawkish tone. GBPJPY retreived from EMA200 which is a strong zone to position bullish trades if the level wasnt breached. 148.60 price action, high in demand zone and the EMA 200 all coinciding in the same arena with bullish indications. Above of all if we look at our golden ratio of fibb series, we can see that 50%fibb is also in the same demand zone providing us with more reasons to position our buys. Our current target for taking profit would be 153.51 where we have both of our EMA50 and major resistance. 154.0 is also a high in demand zone but we wouldnt risk our capital any further until a clear structure is formed. 

GBPJPY on a Bullish run

Jul 21 2021