The JPY continues to be in its strongest COT position for the past more than a decade. The question here is not – “Will the contracts start to reverse?”, but “When will they?”. As we know such peaks lead to long-term trend reversals and right now, we are close to one.
The upper trendline of the weekly closed triangle has been respected many times and right now, price is moving really close to it. Since September price has also respected a bottom trendline, which formed near the daily critical areas.
Most likely price will range for a couple of more swings and afterwards we may see the trend reversal for the GBPJPY pair.
Price now is losing momentum and a good entry will be right above the weekly trendline (if it reaches it). A good TP is right at the daily trendline.
If this scenario doesn’t play out, we will catch the next swing. The critical points are 138.000 and 141.000 (not only psychological, but also near critical areas).
Our previous setup:
The upper trendline of the weekly closed triangle has been respected many times and right now, price is moving really close to it. Since September price has also respected a bottom trendline, which formed near the daily critical areas.
Most likely price will range for a couple of more swings and afterwards we may see the trend reversal for the GBPJPY pair.
Price now is losing momentum and a good entry will be right above the weekly trendline (if it reaches it). A good TP is right at the daily trendline.
If this scenario doesn’t play out, we will catch the next swing. The critical points are 138.000 and 141.000 (not only psychological, but also near critical areas).
Our previous setup:
