On a 4H basis, it appears that there is a long opportunity to take on the GBPJPY pair.
Many datas are supporting the idea and the study. At a technical level, we are on an oversold situation as far as RSI is concerned. On the Fibo retracement, we can clearly see that we are at a solid supporting level. MACD is also confirming the oversold situation. After the speach of ECB President Draghi and baring in mind that GBP is in ERM II, the reaction of GBPJPY was quite similar to EURJPY. But nevertheless, technically speaking, there in a clear rebound possibilities on these level. Therefore, going long on GBPJPY @ 171.400 or around, can be wise.
Politically speaking, BoJ monetary easing is continuing, which means that the financial easing of BoJ will continue to depreciate against main currency baring in mind the size of BoJ QE comparing to other currency. Therefore, on a short term basis, it should not be surrealistic to go long on GBPJPY until 172.15 as a first target, then 172.75 as a second target and finally 173.15 depending on the strength of the bull, the power of the increase. Keep in mind some important figures such as PP 171.56 on a daily chart, with R1 171.92, R2 172.64, and on support side, 170.84, 170.48, and 169.76. To resume, long at around 171.4 with a SL at 170.70 and TP above 172.15
Many datas are supporting the idea and the study. At a technical level, we are on an oversold situation as far as RSI is concerned. On the Fibo retracement, we can clearly see that we are at a solid supporting level. MACD is also confirming the oversold situation. After the speach of ECB President Draghi and baring in mind that GBP is in ERM II, the reaction of GBPJPY was quite similar to EURJPY. But nevertheless, technically speaking, there in a clear rebound possibilities on these level. Therefore, going long on GBPJPY @ 171.400 or around, can be wise.
Politically speaking, BoJ monetary easing is continuing, which means that the financial easing of BoJ will continue to depreciate against main currency baring in mind the size of BoJ QE comparing to other currency. Therefore, on a short term basis, it should not be surrealistic to go long on GBPJPY until 172.15 as a first target, then 172.75 as a second target and finally 173.15 depending on the strength of the bull, the power of the increase. Keep in mind some important figures such as PP 171.56 on a daily chart, with R1 171.92, R2 172.64, and on support side, 170.84, 170.48, and 169.76. To resume, long at around 171.4 with a SL at 170.70 and TP above 172.15