GBPJPY being in a long haul down trend is continuously falling. The support level is at 159.75 which is also a daily support level. This level is the halting level for GBPJPY from where, we anticipate at least a 100-200 pip move correction. There is a probability that once the price starts to move up, we might see a break of the bullish structure on the lower time frames. Once the market turns bullish from this support, only then we can see a potential move up. We will wait for the candlestick on the support level on a lower timeframe.

There is only one ascending trendline in the drawing. This descending trendline had been broken out for sells and has played out the sell setup pretty well. The bullish setup we are eying on the daily support does not seem to have any resistant trendline which would add to the technical factor of the bullish cycle.

At this current level, there is the inverse golden retracement area of 75-78.6%, which is in confluence with the daily support level. This means, the strong held is going to be holding up strongly.

Both the EMA’s are bullish but the death cross is still bullish. Market has broken out for buys from both the EMA’s and has to retest either of the level. Currently, the EMA 50 might be retested at the support level. This support if retested will have three technical factors aligned.

RSI is in a bearish region whereas, CCI is at a bullish region- 44:3- respectively. We can either wait for a bullish divergence at a lower time frame or we can wait for both the oscillators get into an over sold region at the support level.

GBPJPY daily support reaching

Apr 26 2022

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