GBPJPY has been parabolic previous week. It dropped due to fundamental factors of China and pulled back up, correcting the whole drop.

This week, we are looking at potential buys for the pair on intraday.

- Market structure: Previously, GBPJPY had been in a bearish trend on H4. On Thursday, it pierced the swing resistance level of 151.30, which changed its direction bullish. Although on daily time frame, structure is still bearish, but given the current situation on H4, we do anticipate market breaking the resistance and continuing up for the coming week, eventually, turning bullish on daily timeframe as well.

- Trendline: We have witnessed a descending trendline breakout buy earlier. Candles opening and closing above the resistance level have validated this trendline. Furthermore, there is no ascending trendline in formation for a breakout sell. Our forecast within trendline remains bullish for now. Thirdly, the descending trendline extended downwards still needs to be tapped at the resistance.

- Retracement: The broken resistance level, which has now turned support, is in confluence with the retracement level of 75-78.6%. This reflects the two-factor confirmation for going long at this support.

- EMA's: EMA 50 had been broken earlier and is already tested once. At the support level there might be another possible retest of the EMA 50. EMA 200 is still above the market price. The EMA 200 will be our profit target to go long from support.

- RSI/CCI: Both oscillators are in a bullish region. RSI is at 63 and CCI at 50. The over-bought conditions have still not been met. This means, GBPJPY still has room to move up further till the oscillators are in the over-sold region. No divergence has been formed for the short selling. Hence, the clear direction of the bullish move can be anticipated form the support.

We are bullish on GBPJPY with 3 factor confirmations at the support level. If on Monday, market directly goes to our target profit, the trade is invalidated and we will continue to seek for a latest trading plan.

GBPJPY intraday buys

Jul 25 2021

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