GBPJPY has found a strong support above 150.60 and failed to break below 148.55 where we have our 61.8% fibb retracement level present in weekly and 50% fibb level in daily. We were expecting GBPJPY to break below the aforementioned zone in accordance to the weekly bearish corrective structure of higher degree but maintained itself above exponential moving average 200 in daily. The weekly candlestick closed last Friday, reversed more than 50% if the bearish impulsive fall from 153.365, this indicates that GBPJPY will be most probably retracing back to 153.365. The weekly head and shoulder structure with its neckline at 150.365 would be the deciding point for further expected projections once the pair gets there. GBPJPY is trading below the Senkou Span B of ichimoku cloud and is looking forward to breaking above its nearby resistance 151.85, a closing above the exponential moving average 50 in daily would confirm the aforementioned projection. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Wait for a bearish retest of our resistance turned support 150.60 followed by a bullish closing above - would provide us with good entry opportunities to ride the rally with our first take profit zone at 153.365. Incase GBPJPY was taken over by the bears and provided with a breakout below exponential moving average 200 in daily would indicate that the pair will be dragged towards 148.55 i.e 50% fibb retracement level in daily and 61.8% in weekly. In monthly time frame GBPJPY has created three black crows candlestick formation which is a decieving psychological stance adapted by the market; we might receive a strong hawkish impulsive candle reverting all the losses with a closing at 156.20. We will closely be watching a breakout above 151.70-152.0 which would make the pair take an exit from our bearish channel and confirm the bullish trend. 

GBPJPY

Aug 30 2021

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