Great Britain Pound versus Japanese yen has met 70% of our targeted profit zone according to our article published on 21st July. The analysis made was based on an expected correction of a strong degree by reverting the losses made at 148.40 with a bullish fractal confirmation from exponential moving average 200. The relative strength index fell a prey to oversold conditions in four hourly time frame while hanging around 30 on daily chart. The wave count suggested for a bullish correction before going any lower or causing a high degree of bullish impulse, the corrective structure was awaited after the completion of 5 wave bearish impulse. It couldnt be taken as a bearish correction of higher degree because of the highest low made for the third time. Now four hourly chart is showing a minor correction before going up, i.e we are expecting the pair to fall down to 150.50 before continuing its bullish momentum. The four hourly chart with its exponential moving average 200 at 152.57 can cause a pain in the neck for GBPJPY. On the other hand we also have exponential moving average 50 in daily time frame at almost the same price as H4 which are going to act as a short term resistance in the way of GBPJPY.

BULLISH AND BEARISH POSSIBILITIES/ CONDITIONS :

We know that GBPJPY retrieved from fibonacci retracement levels i.e 50% and 61.8% with a strong hawkish pull, but the upper trend line to our bearish channel and the exponential moving averages mentioned in our 'market forecast' above are indicating a short term fall. Slight depiction of strength might shown by pound yen by reaching up to 152.50, but a bearish closing beneath that level would indicate that the gbpjpy will go for a short term sell ride towards 150.65. A bullish fractal confirmation above this weekly support of ours will mark the continuation of our bullish trend while breaking of the structure will make us recalculate the waves in accordance to the fibb levels and MACD to provide any further suggestions on the pair. 

GBPJPY H4

Jul 26 2021