GBPJPY is doing a textbook move of breakout and retest. The resistance before has now turned support at the price of 163.00. At this support we will look for a price action for a bullish candle in order for us to go long. The market is forming higher highs and higher lows which means that the trend is bullish.

The descending trendline is in formation and has the potential for the market to breakout buy as the trend is already bullish. 

The retracement level of 61.8% is aligned with the support level. This support zone is going to act as a pushing force for the market to push up.

The EMA 50 is still bullish and the market may tap the support level in confluence with other parameters for the market to continue moving up.

RSI is at 42. This needs to be neutralized at the level of 50 region. If this happens at the 50 level, and the market is at the support level, we will take the buy position. Other option is if the market taps the over sold region and forms a bullish divergence. Then, we will take another buy position.

Golden area for GBPJPY buys

Sep 16 2022

Stop Loss -0.53%

Holding time 4d10hr

163.187

Entry price

162.329

Stop loss price