GBPJPY Technical Analysis Chart
So GBPJPY holds the #1 spot on the “Vote for Review”. Invite your friends to vote on which pair I should review and provide updates on through the week.
Looking at the monthly, we should only be focusing on few important details. We see price is at strong support. Price tested the area highlighted by the bar at the bottom and we can see the different points it tested it.
The next important thing to note is the trendline. The bearish trendline can be seen with a HIGH then a LOW then a LOWER HIGH then a LOWER LOW. We are currently seeing a bearish engulfing at the question mark but DO NOT make decisions on candles that hasn’t closed. If price goes up and breaks the LOWER HIGH that bearish trend would no longer be in effect. On the other hand, we could see price break the LOWER LOW then the bearish trend continues.
One of the keys to doing top-down analysis is you have to keep in mind what you saw on the higher timeframe but still keep track of the most recent moves. As you can see the main focus on this chart is the bullish leg. I dimmed the other information because they aren’t the most important now. This new bullish move is what we should pay attention to, we can see clearly price is making higher highs and higher lows. As long as price doesn’t go below the previous higher low we will remain bullish. Another thing to make not of is that price broke the trendline with a very powerful bearish candle.
At this point, we are not sure if price will find resistance at the back of the trendline, if it will continue down or go up. But from this point there’s an setup to be had.
The daily shows the bullish trend much clearer. I have highlighted the main wave with yellow. So we seeing the break and as soon as price breaks it stops to choose its next target. I am actually loving this setup already. I trade breaks whether its break of a trendline, triangle, or channel and seeing that price broke the daily trendline. I’m looking for an entry. If you would like to learn my entire strategy and receive my Sunday Setups PDF get access now Purple Squid Trading Manual eBook.
Now look at that what a beauty. Thats a lovely break out zone. You see price broke a minor bearish trendline and started to consolidate. It’s now converging and by the look of it we could see a pop tonight. Although my bias is bearish it could still pop to the upside but would probably find resistance at the previous LOWER HIGH. For those who plan on trading it, tag me your charts on Instagram win/lose or draw.
Much clearer, those two areas circled are my breaking points. It means if price break those areas I will be interested in it. This is a nice consolidation and break is almost sure. Thats it guys! Get your friends to vote on the homepage to keep your favourite pair at top so I always review it.