The chart can talk for it self I'm pretty sure about it. But lets dive into more detail and see what confluences we can find to back up our trading idea...
1- Price is getting very close to structure point means it used to act as support before but now shifted to a resistance
2- Also the area can be considered as a static and classical resistance area, since it's been able to hold price lower every time price got close to the area.
3- Price is at bullish channel middle line which could add to a resistive cluster.
4- From fundamental aspect JPY can gain more power as central banks around the world going to reduce the pace of rising interest rate.
5- other than GBPJPY other JPY pairs are also in resistance area which give us intermarket confluence.
But be aware its very likely that price goes above the last high which showed on the chart by an arrow and then turn to the downside and this is only for liquidity taking activity and to capitulate long traders. However if price can manage to close above the arrow then we can say the chance that resistance area wont hold the price will increase.
1- Price is getting very close to structure point means it used to act as support before but now shifted to a resistance
2- Also the area can be considered as a static and classical resistance area, since it's been able to hold price lower every time price got close to the area.
3- Price is at bullish channel middle line which could add to a resistive cluster.
4- From fundamental aspect JPY can gain more power as central banks around the world going to reduce the pace of rising interest rate.
5- other than GBPJPY other JPY pairs are also in resistance area which give us intermarket confluence.
But be aware its very likely that price goes above the last high which showed on the chart by an arrow and then turn to the downside and this is only for liquidity taking activity and to capitulate long traders. However if price can manage to close above the arrow then we can say the chance that resistance area wont hold the price will increase.
