Earlier, GBPJPY, was in a downtrend. After tapping the higher time frames support level, it started to move up. From this current support, there is a 100 pip window for GBPJPY to move up. Our targets would be at the resistance.

The descending trendline has been broken out for buys. The validation will be confirmed once the candles start opening and closing above the trendline. On the support trendline, we see candles rejecting the trendline. 

The support level perfectly confluences with the golden retracement area of 75-78.6% level. This gives us an additional confirmation for the contiuation of the mark up.

Both the EMA 50 and EMA 200 are in a bearish direction with a bearish death cross. Market still needs to go to the EMA 50 to retest the level. This retest might be our profit target.

The oscillators are currently hovering at the neutralized levels of the market. These levels are turning bullish as well. At the support area, we might have further confluence of the oscillators with other price technical indicators.

Inverse Head and Shoulders on GBPJPY

Dec 12 2021

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