The market structure on GBPJPY overall is range bound. But, on weekly and above, we are still bullish. What we see is that now there is a transitioning in the bear market. We will be looking for buys at the support level on H4, priced at 150.12. This level is important as the candles left the zone and now may retrace back towards the support level and then take a bounce. After that, we can see a HH and HL forming. Our target for profits is estimately at the resistance level. Right now, the market broke the resistance and is testing it as a support. This support will be the area for us to add on to the existing buys.

We have a descending trendline breakout for buys. Earlier, the H4 trendline breakout buy had been triggered. Now, the confirmation trendline breakout buy has been triggered and may see the price continuing up after a minor retracement. The breakout buys have been validated and confirmed for the market to continue moving up.

The retracement levels of 61.8 - 78.6%, are formed within a support level. This support level is authenticated further by the alignment of the retracement level. This would add another factor for our long positions.

EMA 50 and 200 had been breached for a sell and have made a death cross for the bear market. The EMA has been retested numerous times and now, we might see a breakout through the EMA. With this anticipation, we will keep the long positions hold till the resistance.

There is no indication of buys on the oscillators right now. RSI and CCI, both are ranging near their neutralized level. We need to see a clear direction of the oscillators. We can also wait for the either of the oscillators to tap their over sold region in order to get on board with the buys form the support level. Or, we can wait for the oscillators to cross the neutralized levels.

Scaling in buys for GBPJPY at 150.00

Oct 03 2021

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