GBPJPY has been in an uptrend despite the covid spread throughout the UK. This means, the markets have absorbed the news of covid and is continuing its move based on economic factors.

As GBPJPY is bullish, we will be looking at buys for the pair. Market is at the resistance level at the price of 156.10. Once market breaks this and retests the resistance turn support, we will take our long position. It should be noted, on higher time frames, we are still bullish on GBPJPY.

The descending trendline has been formed above the current price action and awaits the breakout buy. Once the market breaks out for buys, we will have an additional confirmation as the market had already formed the bullish structure.

The 75-78.6% retracement level is in between the two support levels. Market bounces of the retracement level and is tapping the resistance. This resistance needs to be broken for the market to continue up.

EMA 50 has been broken out for sells and is now being retested. Our anticipation is that the pair should breakout the EMA 50 for the buys. On ther other hand, EMA 200 is still bullish. Overall, the death cross of the EMA’s is bullish as well.

Both the oscillators are in a bearish region. This region needs to be broken out towards the bullish region. Once the market has broken the resistance level, we might witness the oscillators crossing the neutralized levels.

In an overall structure, we see GBPJPY as bullish. But once we are unable to break the resistance, the setup is invalidated and we will further look for sells.

100 pip bullish move on GBPJPY

Jan 16 2022

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