Great Britian Pound versus Japanese Yen has travelled smoothly in accordance to our analysis published on 17th Sept, anticipating that the pair will be adapting to dovish rally towards 50% fibb retracement level near 140.0 price action. Our bearish expectations were based on failure of the pair to break above our upper trend line on the daily chart and taking a bearish reversal from 152.80 at Senkou Span B of the ichimoku cloud while driving all the way below exponential moving average 50 in daily. Another major factor was impulsive bullish correction which completed at 152.80 and the failure to break above, followed by a closing below the 152.20 price action - had indicated that the bears will be taking over the market sooner than later. After the market broke below 150.54, 50% fibo retracement level was our pivot of concern as the next target.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

From the current market scenario, the pair is strongly supported by exponential moving average 200 in daily and high supply demand zone at 140.0 price action. A level that hasnt been broken since Feburary 2021 and the exponential moving average 50 in weekly time frame is also supporting the current bullish stance from current market price. If we draw the fibo level in weekly from 156 to 136, we would observe the 61.8% fibo being situated at 148.50 price action, indicating that there is high liquidity in this zone and unless the aforementioned level is broken - we can be looking forward to 150.50 - 150.70. 

GBPJPY

farhan fazal

Sep 23 2021