GBPJPY after a long term of ranging market has the potential to start its markup, considering the fact, the longer the range, the more chances of a strong bounce up. That being said, we will be buying th pair at the support level, which also shows us a double bottom. The previous low was unable to be pierced, therefore, we consider the trend still bullish on higher time frames. Fundamentally, YEN is weakening as well. Therefore, a decen opportunity for the long term buys on GBPJPY.

The descending trendline is forming in accordance with the impending breakout buy. This breakout buy if induced, will have a rippling effect of the mark up. 

The retracement level of 61.8% is in confluence with the support level. Market was unable to tab the 78.6% level of retracement and bounce back up before tapping the lower retracement region.

Overall, we have only used a naked chart for this GBPJPY analysis. EMA 50 and RSI have been ignored in this case.

Buy bias on GBPJPY

Sep 05 2022