The market ranged whole week between 160-162. The bounce back for a pullback seems imminent at this level. 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 163. 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. For the resistance trendline, market has been tapped at the price action and rejected by the prices.

The golden retracement area of 75-78.6% resides slightly above the resistance level. This level is the go short level for us where we will take a short position if the market reaches. But, this level is also a spike level where market may only spike to grab liquidity and only to further drop down.

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 bearish region, with a little window towards the neutralized and over sold region. In order to sell at a good level, we need the oscillators at over bought or neutralized levels. RSI is at 55 and CCI at 90. 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.

Range bound GBPJPY sells=

Apr 08 2022

Stop Loss -0.61%

Holding time 7hr

162.395

Entry price

163.381

Stop loss price