Market was flooded with orders from previous week. Although we had taken losses on the short sells we had on GBPJPY, we are looking towards the longs. The market has broken out from the resistance which has now turned support. This level is priced at 161.50. Market has formed higher highs and higher lows. That being said, we will be taking a simple break and retest based long position at the support.

There is a potential of a support trendline being tapped or rejected at the support level. This support level has the confluence with the trendline and the support.

The golden retracement level at the 75-78.6% is in confluence with the support level, where we are looking to go long.

Both the EMA’s are bullish with a bullish death cross. After the breakout buy of the EMA 50, market has unable to retest the EMA 50 and is heading up. EMA 200 is way down the current market prices, therefore, in this setup, we don’t really see an active participation of the EMA 200.

RSI and CCI, both are in an over-bought region. This over bought region needs to be neutralized by market reaching its 50 RSI and 0 CCI. This is the level where market would potentially be at the support level.

Simple breakout and retest for buys on GBPJPY

Apr 11 2022

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