GBPJPY – turnaround expected the week of 25 Jan 2021
This pair is approaching a descending trendline from 3 years ago and will likely touch it for a 3rd time. It is also within the S/R zone around 141.930 that has been significant since 2009, having acted both as support and resistance. We can see how it has held price for the last 2 weeks, as it did in Aug 2020.
Moving on to the daily chart, we can see the pair seems to have formed a kind of top, 7 recent attempts to overcome the ceiling have all failed. I do expect more push to the upside to occur, may even touch that descending trendline you saw on the weekly chart. But my bias is turning bearish now and I will be looking for a short entry.
I will monitor what happens during the coming week on the Daily, H12 and H8 time frames to see if the opportunity to go short presents itself. My initial target would be just above the next significant level at 139.800. Further downward continuation is likely IMO and should open the possibility of a second target much lower.
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I will monitor what happens during the coming week on the Daily, H12 and H8 time frames to see if the opportunity to go short presents itself. My initial target would be just above the next significant level at 139.800. Further downward continuation is likely IMO and should open the possibility of a second target much lower.
If you like my analysis please give it a “thumbs up” and follow me to get immediate notifications.
As always, please use sound money and risk management in all your trades.
Comment:
No trade triggered, the pair just blasted through resistance.