GBPJPY is in a bullish trend on daily and H4. We will be waiting for the stop hunts below the support level, where the double bottom is being formed. With this, it becomes risky buying at the support level as this is the area where major players will be shorting to gain the liquidity to grab the market up. Market has formed higher highs and higher lows and was unable to break the previous low on the charts. At the support level of 161.40, we will take a long position on the market.

The descending trendline is pending a breakout buy. Once the breakout is occured, we will have a further confirmation for the buys after the validation of the candles opening and closing above the market.

The retracement level is the 78.6% level which the stop hunt level and the market has the potential to tap it. Its slightly below the support level we have drawn.

EMA 50 is still bearish. There is only one aspect of the EMA 50 on the H4. Either we take the profit at the retest of the EMA 50 or we can wait for the market to break the EMA 50 towards the bullish side.

RSI is at 54. This means, market is in the bullish sentiment. Once it taps back towards the neutral levels, we will have our long positions triggered. 

Reminder on GBPJPY

Aug 29 2022