GBPJPY is in a bullish trend until it breaks the daily support structure. We will take the benefit of the trend continuation. We will be looking to buy at the support level at the price of 155. Our target will be till the top resistance. The current bearish move was the retracement for the bullish continuation of the momentum.

GBPJPY seems to be forming a bullish penant pattern. We have a resistance descending trendline and also a support horizontal trendline. These trendlines need to be broken out on the buy side for the confirmation of the breakout buys. After the validation, we will have a further confirmation for the market to continue up and we could further scale up our positions.

At the support level, there is a confluence of the fibonacci retracement golden level of 75- 78.6%. This confluence tends to be a strong parameter for the market to bounce up. 

Market is ranging between both the EMA's. EMA 200 is below the current market prices and EMA 50 is above the current market prices. We can anticipate that the market bounces up strongly after breaking the EMA 50. That being said, market also needs to retest the EMA 50 in order to form bullish momentum.

Both the oscillators are currently in a bearish region. Once market taps the price levels for our buys, we anticipate that the market may form a bullish divergence. This will give us an added confluence with other technical factors.

We will be buying the pair from the support level. 

Trend continuation on GBPJPY

Jan 20 2022

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