It appears that GBP/JPY is in a very interesting situation. From one perspective, price is approaching both major resistance and a major trendline which signals a potential bearish entry. However, in a different perspective, price now has the opportunity to have a major bullish breakout being that bearish price action has weakened throughout the months and no lower lows have been created since March of 2021. Could this weakening of bearish dominance be a foreshadowing of a major bullish breakout or will price respect this important area of resistance and reverse towards the downside? Which team are you in? Are you a Bear or a Bull?
Let me know what your opinion is in the comments below!
truth be said thats going to be bullish if you look at the top there is what we call volume imbalance and price needs to get there on on a htf monthly so after that we set to go bearish
akuabata
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Bearish ....selling into support then a breakout
ElliottGAD3
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yes, interesting situation. thanks for sharing
decentshaw
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Downward trendline is ascending. I think with Intrest rate hike we should expect bouncing from support levels. I think strategy should be buy on weakness( support). Trendline support level (156) horizontal support ( 155.5). Also with Ukrain/Russian tension escalation we may see investors going for safeheavens strengthing JPY. But in any case i m favouring buying on weakness
WatersG
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good post. thanks
armondodomena
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Team bull but honestly it’s just a gut feeling, I believe price will respect the area and continue to bounce between the ranges
alphalicious
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@armondodomena Thank you for your input! I must say that a part of me also agrees with you. For some reason I have a feeling that price might actually break towards the upside after many months of weak bearish action. Although I also think that price might respect both the major resistance and major trendline. I suppose we’ll see in time and we’ll have to wait for further confirmation! One thing is for certain... there’s going to be a MAJOR breakout coming whether bearish or bullish!