GBPJPY is at a tough spot. Higher time frames have formed higher highs and higher lows depicting a bullish structure. Whereas, H4 is denominating a bearish sentiment for the while. We have a strong support/demand level at the price of 154.80. This area needs to be respected if the market needs to confirm its bullish continuation. If it fails to react at this level, then we need to aware of the price action and avoid getting trapped with bearish pressure.

The ascending trendline has been broken out for sells. After the breakout sells, we wait for the retracement which has not happened yet. That being said, on a higher scheme of things, we are still bullish. So until the structure at the price level of 154.80 is broken, we will be buying at this level.

At the support level, we have a Fibonacci retracement level of 75-78.6%. This level is in confluence with the support level and will be a pushing factor for the market to move up. In accordance to the golden area, we have a double retracement confirmation at the level. The Fibonacci retracement level of 61.8% also overlaps the golden area. This gives a solid confirmation of the level, as such double retracement confirmations are rare.

Both the EMA’s are bullish with a bullish death cross. Market broke out the EMA 50 and EMA 200 and is due a retest of either of the EMA’s. At the support level, we analyze the retest of the EMA 200. This will again add as a solid confirmation on our position.

Both the oscillators are in a bearish region. We might observe the oscillators being at an over sold region once the prices tap the support level. At these over sold region, we might see a bullish hidden or regular divergence which will act as a consortium for the markets to push up.

GBPJPY double retracement at 154.80

Feb 07 2022

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