Price of the GBPJPY is currently in a downward trend movement. I expect this will change in the longer term period.
3 different zones have been drawn:
- The green zone (Target zone) is the price forecast for our profit.
- The orange zone (S/R zone) was a zone that had not yet been breached. The price has passed the zone at the moment,
but I expect it to be important in the future.
- The red zone ( ) is an important part of the analysis. This zone has been respected several times in the months:
That's why there is an expectation that this can be an important turning point for the downward trend.
Trend lines are distinguished by numbering:
- Trendline 1 (black) is the ''base line'' of the current trend.The downward trend is clearly recognizable with
LH and LL (Lower heights and lower lows) since December 2017.
- Trend line 2 (blue) is the ''active line''. Price has passed the line once and then always respected.
- Trend line 3 (black) is the ''breakout'' line. If this is passed, this may mean the beginning of a new trend.
I expect that after the outbreak of the S/R zone, the price will undergo a retest. If price drops after the retest, I expect it to fall to the (red). This zone will also be tested and subjected to a retest. If the bulls take action and break 3, then there will be a trendreversal. After that the price will strike through to the S/R zone and Target zone.