As expected in my previous analysis, the 200 level has triggered extreme volatility causing a more than 800-pip move on GBPJPY.

After holding for over a month, my February 22 short trade has finally triggered its stop loss:

https://www.finlogix.com/analysis/20240222/gbpjpy-intraday-analysis-and-trading-plan-for-february-22-2024

There are no major economic reports both in Japan and the United Kingdom this week.

Re-assessing GBPJPY’s high timeframe candles:

Yearly Candle: Still a Green Body since last check but with a Longer Head Wick

Monthly Candle: Previous close is a Green Body with a Longer Head Wick current is a Red Long Lower Shadow

Weekly Candle: Previous close is a Green Body with a Longer Tail Wick current is Red Long-Legged Spinning Top

Daily Candle: Yesterday close is a Red Body with a Longer Tail Wick current is a Green Long Upper Shadow

We saw a high price volatility on Monday after GBPJPY has hit the 200 level leading the cross pair to a new 9-year high since 2015.

The May month is already in red suggesting that a further move up is unclear after attaining a multi-year record.

We are talking about a big time resistance area here and 200 has sparked Japanese Government intervention.

Meanwhile, on the weekly view, we are seeing a long-legged spinning top in red hinting a new mid-term consolidation range.

Since I’ve missed the optimal short entry last Monday, we lay out first GBPJPY’s latest swing high and low as retracements.

A more than 800-pip move can be seen from these swing points and price is hovering near the cross pair’s 4H 50-SMA and in a discount array.

Price exhaustion can also be analysed in the monthly view and plenty of time left for the current week closing.

Volatility levels remain high for GBPJPY therefore we can still expect price spikes at the end of the trading week.

For now, I’m going to long the possible pullbacks intraday with the following buy orders:

For now my bias is to buy setups only through pullbacks.

I missed both the optimal short and long entries this week.

With a minimal stop only that I can afford to risk with.

All trade ideas I share are my own views and for my own trades only.

Copy trading and trading directly involve risks.