GBPJPY, on a higher time frame, is still bullish, but on the lower time frame, we tend to see some beairsh pressure. Market retraced towards the strong rejection area. Now, market has formed HH's and HL's, which indicates a forming bullish trend. We will be looking to buy at the support level.

GBPJPY has a bullish pennant. A descending trendline has been broken out for buys and is validated by the price action. On the other hand, we have a support trendline, which completely aligns with the support level. At this trendline, we might see a candle reaction and market may continue moving up.

At the support level, the golden retracement level of 75-78.6% completely overlaps with the support level. The price point of 154.25 is at the support level but with confluence of golden retracement area.

Both the EMA's are in a bullish momentum and bullish structure. The EMA has a bullish death cross and currently, EMA 50 and 200, both are being retested at the support level. This retest will act as a catalyst for the build up of bullish momentum. 

CCI and RSI, both the oscillators are in a bullish trend. RSI is at 52 and CCI at 20. There is a high chance for oscillators for fall back at the neutralized levels and then scope up for the bullish move. At the support level, both oscillators may be at the neutralized levels. 

At the support level for GBPJPY, all the factors are aligned. This setup for all technical factors combined will make a strong bullish setup.

GBPJPY buy. position from 154.25

Jan 31 2022

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