After a strong bullish run on GBPJPY, a pullback is inevitable. What we see is that market is tapping the major daily and weekly resistance level at 155. This area is a psychological area, which impends a solid reaction. Right now, the market is bullish. We will be eying the counter trend trade from this resistance.

The market has formed an ascending trendline, which is still far away from the price action. GBPJPY might simply tap the trendline and bounce back up, or maybe, break the trendline. As the trend is bullish, we should be aware that this trendline might not be broken out for sells.

The 75-78.6% retracement level is a little below the resistance level. The price of the retracement level is 154.10. Market broke the retracement level on daily, but is due to break it on the weekly candle, which is still ongoing.

Both the EMA 50 and 200 are in a bullish region, with a bullish death cross. Earlier, market broke up the EMA 50 and has not retested it yet. EMA 200 is far below the current prices. We will see how to anticipate this EMA in the upcoming trade plan for GBPJPY

Both the oscillators are in an over extended bullish region. RSI is at 68 and CCI is at 140 respectively. We will see for another price push up, which will form a bearish divergence on the oscillators and confirm our entry.

The resistance level is strong for the GBPJPY sells. This strong level may drive the prices down in order to accumulate more orders. It should be noted that the trend is still bullish and we are only anticipating a correction on the impulse leg up.

GBPJPY exhausted with bullish pressure

Oct 13 2021

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