GBPJPY - Consolidation before continuation or is a correction in store?
I'm posting the 1 hour chart first. We can see price was initially rejected from 141.5 and then we see 140.6 being a key level that bulls couldn't hold as support after a short break above and also acted as resistance.
I will post the weekly chart in the comments. You will see that price is currently at a level with many weekly candle closes, confirming strong resistance level above.
The lower blue trend line was drawn from the weekly chart. The break above may act as support.
I also have been watching an equal weighted GBP index and it's showing similar signs of hitting strong resistance.
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Weekly showing strong resistance.
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GBP Equal Weighted Index. Dark shaded area is a gap from Brexit sell off. Also, have a confluence of resistance; intersecting trend-lines.
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Yen Equal Weighted index for anyone interested. This one is up for debate. Two false breakouts above channel.
1) Wick from Jan 2019 flash crash. 2) Look above and fail to hold support August.
Consolidating between a couple key levels.... If we break lower, we could test channel support again.
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Weekly Yen Index -- Look at the green arrow (bull candles from 2008) When shit falls apart, it happens quick. lol
if it does fall, would you not consider a bigger fall towards 130 again?
cccpKGB1
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@ahmedzahid2799, I think it's entirely possible. Depends on how long you want to hold the trade, how it reacts to support levels in between your target.