The market cycle on GBPJPY is bullish and is forming higher highs and higher lows. The uptrend has been formed on all higher time frames. What we need to evaluate now is a strong support/demand zone, from where there is a potential for the market to move up. The price of the support is 156.50 and then 155.40. If market breaks the 156.50 support levle, we will be looking at the second support from where the bounce is expected. This price is at 155.40. We will add in other factors to strengthen up our levels for buys.

The ascending trendline has been tapped by the price action, and is potentially being rejected. If the trendline is broken out for sells, we still need to wait for the market structure to turn bearish. Yet, there is no certain direction on the trendline. We will continue to monitor the trendline consequence. 

Between both the supports, we have golden retracement area, priced at 155.80. We can also take a position at this level and keep stops below the support level. Sometimes, market fakes out till the retracement level and shoots back up. To avoid missing, we will take a long position at the retracement level.

Both the EMA's are bullish. EMA 50 is being retested at the current support level, along with the other technical factor of the trendline rejection. EMA 200, lies at the support level of 155.40. This test will prove to be solid for the leg up.

Both the oscillators are merely below the neturalized levels. RSI stands at 43 and CCI at -50. This indicates the fact of the market being neutralized on support levels. At this support, we can wait for the oscillators to turn bullih or we can wait for the lower support and oscillators forming a bullish divergence, on either of them. 

GBPJPY is at a good level for buys. We need to wait for price rejection at the current support or for the market to tap down to the lower support.  Either ways, we analyze GBPJPY in a bullish momentum.

Super bullish GBPJPY

Feb 13 2022

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