FOREXCOM:GBPJPY   British Pound / Japanese Yen
Analyzing the 1D and 4H charts, I will continue shorting.
Yesterday my sale from 156.020 has fallen to the level of 154.9xx making a movement of 112 pips, if you have followed the analysis it is smart that you have put the SL in the entry price since a movement of 112 pips is a very considerate descent.

We are in an important selling area in which we have to be very vigilant as we approach the 158.2xx level, the previous high of October. If the price exceeds this level, we can aim to buy close to160.2xx level, but in case that the price rebounds in the current zone, we will continue to sell up to the levels established in the previous long-term analysis.


Last month, GBP interest rate has been raised during the month of December, which means that there is a high probability that we will break the 158.2xx level and go aim for 160.2xx level.
On the other side, from my point of view, the price increase due to the interest increase is comig to an end soon and with the increase in COVID cases in England it can affect the price considerably.
Another highlight is that the Japanese Yen has been bearish for some time and it is very likely that we will soon see a recovery which means the decline of the GBP / JPY.

How am I going to operate it:

I will make another sale with an SL above 158.2xx (Applying risk management, I adjust the lot according to my capital), and in case the price touches my SL I will wait for a re-entry for the purchase with the aim of reaching 160.2xx . Since this pair is very volatile, I will be vigilant as the price can go directly to 160.2xx without making any retracement and I would wait for another opportunity to enter the market.

The divergence is still valid on the 4H chart, therefore we can add the 153.7xx level as our first target. This objective will be invalidated if the curve of the AO indicator exceeds the yellow line I have drawn over the indicator.

I accept any additional information or comments regarding my analysis.

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