After breaking all supports towards the downside, the trend tended to be bearish on GBPJPY. This trend halted at the level of 161, which is also a pshcyological area. Earlier, GBPJPY had casted a shadow forming a higher high. If market bounces off from this support, this will be the higher low, which will in turn make the trend bullish for the correction, or at least till the resistance of 162.80.

The descending trendline is still above the current market price and is impending to breakout buy for the market. Once the breakout buys has been breached, and the price action has validated the trendline breakout, we will have a confirmation for the continuation up. But, more chances are that the market may reject the trendline. And at the trendline, we will be holding our take profits.

At the support level, GJ has a confluence with the market structure of support and golden retracement region of 75-78.6%. This golden retracement with support acts as a catalyst to fuel the market upwards towards the resistance.

Both EMA's have prices below them, hence making the EMA's bearish but the death cross is still bullish. With that, the retest of the EMA is still pending and the market may retest either of the EMA at the resistance level. This resistance level or retest will be our profit target.

RSI and CCI are not giving a clear indication for the buys yet. They are below the neutralized levels at the bearish region. We need the oscillators to turn towards the bullish side breaking the neutralized levels. Right now, the support trendline is supporting the price action as well the oscillators, which indicate a thrust of bullish pressure upwards.

GBPJPY slight correction on bullish side

May 08 2022

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