After a sudden bullish push on GBPJPY, the trend has adversly turned bullish with formation of higher highs and higher lows. The previous resistance was breached and is due for a retest at this level, where we are eying for the long positions. That being said, we need to wait for the market to retest this level priced at 163.50. 

The descending trendline has been broken out for buys with a very strong breakout and pressure. Price action has validated the breakout. Now, we are only waiting for a confluence to be formed at the support level, along with some other technical factors.

The retracement level at the support area which is in confluence stands at the level of 50%. This retracement will have a strong markup level for the pair.

The EMA 50 has turned bullish with a breakout buy. The EMA is still due for the retest and might have a confluence at the support level. This confluence will act as a strong catalyst for the market to move down. 

The RSI is at 68. This means, we are already in a bullish range and need a neutralization at the 50 level. This is because we has a narrow window towards the over bought area on the oscillator.

Buys on retest

Sep 08 2022