160 level was a key phycological level for GBPJPY on all higher timeframes of weekly and monthly. The bounce back for a pullback was imminent at this level. This level played out well dropping around 200 pips. In order for the drop to sustain, it has to tap the double top once again in order to fill the orders for the drop. Market has formed a resistance at the price of 160. This resistance was left by the candles printing below the resistance. The market is super bullish. We will just be cashing in the pullback for the while.

On H4, ascending trendline is still far below the current prices. If market starts dropping, this trendline would act as our profit targets for the drop. Also, on the higher time frame, we see a resistance trendline which has been tapped by the market. Prices rejected from this trendline.

The golden retracement area of 75-78.6% resides slightly below the resistance level. This level is the go short level for us where we will take a short position.

Both the EMA 50 and EMA 200 are bullish with a bullish death cross. At the support level, the EMA 50 retest lies. This retest needs to be done in order for any continuation of impulse leg up.

Both the oscillators are in a bullish region, with a little window towards the neutralized region. In order to sell at a good level, we need the oscillators at over bought levels. RSI is at 70 and CCI at 40. This means once market taps the double top, we might see some sort of a bearish divergence at the resistance which will confluence with other technical factors in order to continue moving down.

GBPJPY calibrated in an over bought state

Mar 23 2022

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