GBPJPY, Bounced At Key-Level, Suggesting More Upside Potential!

Hello Traders Investors And Community, welcome to this analysis about the current fundamental and important price action and its structure occurring in the GBPJPY contemplating further outcome, there are some important and meaningful signs which are indicating that we will continue with the overall trend with which we began after bouncing at the key-level at 124 when the smaller correction has completed.

When looking at my chart we can see that GBPJPY is at the moment correction the heavy up-ward movement we have seen from 124 to 135, this is natural and will occur in a trend, the question now is if it is just a smaller correction or a reversal to the downside, this can be answered when looking at the overall heavy volume and momentum with which the upward-move occurred, therefore, it is not a weak move and this is implying to us that a continuation to the upside is within the possible spectrum.

As you can see the next significant support is at the 128.6 level which is marked in orange, when we visit this level we will highly likely bounce there. If this occurs like imagined we can see the uptrend approaching the higher resistance level at 135 which you can see marked in grey and the important 50-EMA in orange which is still resistance but can be taken out, these levels building a logical resistance-confluence zone which we will first test after moving possibly higher to the bigger falling resistance line you can see marked in blue.

Overall we can keep in mind that the bullish trend established from the key-level can continue but that has to be confirmed rightly and for a further continuation with a new high in the structure we need to take out the important resistance-zones already mentioned. This structure can be traded with an aggressive entry after the support-level touched or with a conservative entry after confirming the continuation trend with the proper volume and momentum.

Thanks for watching the analysis, support for more market insight, and all the best.
The market will teach us when to enter and when to keep patient.
In this manner: FAREWELL

Information provided is only for educational purposes and should not be used to take action in the markets.

Comment:

ANALYSIS UPDATE: GBPJPY bounced in the range and supports to form the final breakout and reach out to the target zones.