In our analysis published on 30th Aug, we anticipated that the bulish weekly candlestick closing on 25th Aug - reversed more than 50% of the bearish impulsive fall from 153.365 which indicated that GBPJPY will be most probably retracing back to 153.365 but found resistance at Senkou Span A of the ichimoku cloud at 152.25. We also suggested that 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 because that became a strong resistance turned support and above the aforementioned level we consider GBPJPY hawkish in stance. Thirdly the bearish retest made 26th Aug, followed by a bullish reversal - went in our favor as we anticipated a bullish continuation of correction towards 152.25 where multiple strong resistances were present. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

From the current market perspective, GBPJPY is trading above interday exponential moving average 50 and 200 in four hourly time frame along with Senkou Span A left below the current market price. The pair seems to be in an extended consolidation of smaller degree on daily chart for being stuck inbetween 152.25 and 151.10 but another critical point lyes at 150.60 price action. A breakout below the aforementioned support would alter the odds by favoring the bears while driving the pair down towards 149.90 and 149.0. On the weekly time frame, GBPJPY is showing hawkish sentiments but we need a breakout above 153.365 which would confirm the bullish trend by targeting 155.90. We will be keeping retail traders posted as we get a fractal impulsive closing at one end and update our viewers with the final projection of GBPJPY for better managing positions and entries at the right levels. 

GBPJPY

Sep 08 2021