GBPJPY stops at breakeven
Vasl Capital
GBPJPY·
Jul 26 2022
Stop Loss -0.49%
Holding time 4d22hr
165.682
Entry price
166.490
Stop loss price
Right now, as we are in 120 pips in profit, we will be putting our stops at breakeven to avoid turn around.
YEN has been the weakest in the trading industry since 2 decades. The fundamental impact also includes the internal news of the Japanese economy. GBP had its own low ends which triggered the sell off on GBPJPY. Although the sell off was expected from the levels of 164, we had to wait for the confirmations.
Market continued moving bullish from this price. Now, technically the pair should stall at the price of 165.50. Market is at a resistance level which is a strong level.
On the market structure, GBPJPY has formed lower lows and lowers highs. This structure reflects the bearish structure. On the higher time frame, above from H4, we still see a bearish continuation as there is a window towards a further downside. Right now, market is at support of 165.50.
The ascending trendline is impending the breakout sell, after validating the opening and closing below the trendline. The pivots of this trendline are the solid swing points which enable the trendline authencity for the breakout sells. After this breakout sell, we will be looking for the retracement.
The golden retracement area of 75-78% zone, is at the confluence with the resistance level priced in at 165.50. We will be looking to short the market at this zone in confluence with the resistance.
The EMA 50 is in a bullish trend. The EMA has been broken out for buys. If we take the shorts from this current level, our first profit target can be at the EMA 50 retest. After this, we will look for a further continuation once the market breaks down from the EMA.
RSI is at 41 and has the window towards the neutralized level. With this break out sell, we can see market dive into the over sold region. If not, we will see the oscillator retracing back towards the bullish region, whereas the prices of the pair elevate towards the resistance level. From this area, we will detect what the oscillators show us.
CONCLUSION: BEARISH