FX:GBPJPY British Pound/Japanese Yen
The GBP/JPY has broke through resistance on an impulsive move. We're looking to buy the pair on a pullback to our role reversal zone, our entry should also coincide with the ascending trend-line as drawn in the chart. This is a basic breakout-pullback-continuation move, our entry is around the 184.60 handle, with a stop just below the zone and trend-line at around 184.150. We plan to trail out stop on this trade using future swing lows.
The overall trend is still bullish, however, the trend-line break is indeed a sign of weakness; in fact, our advise would be to draw the current descending trend-line in your charts, a break and close above this descending trend-line with the 38.2% holding and the support zone holding is a good sign for a bullish future.
the next resistance level is at 185.500, notice how price rallied up to that level (3 bull candles) and then formed a shooting star followed by massive selling down to support. There could be some friction heading higher, ultimately we do believe this pair will indeed go higher though.