GBPJPY, Forming Channel-Pattern, Breakout Determines Direction!

Hello Traders Investors And Community, welcome to this analysis where we are looking at GBPJPY 4-hour timeframe perspective, the recent events, the current formation-structure, what to expect from it the next times and how to handle the final scenario in an appropriate manner. GBPJPY has formed a huge exponential uptrend where it recently stopped to go into a longer-lasting consolidation where it is currently forming a decision-pattern which will determine the further outcome, in such a situation it is important to need to know what is possible to happen and how this situation can be handled out of a trading perspective, therefore, I detected some important signals which need to be considered here in order for outcomes in the pair destiny.

Looking at my chart you can watch the huge ascending-symmetrical-channel marked in blue which the pair is building up here with the lower and upper boundary already touched several times and building up a coherent range, such formation can confirm either to the up or downside with the projected target from the low and high of the formation to the proper breakout, as GBPJPY is overbought in the higher timeframes and has some important resistance structures here established the bearish breakout is more likely in this case which will confirm with a break of the lower boundary to the bottom, the bullish one will confirm the channel as a bull-flag but the price will have a hard time to advance because the pair is still trading in overbought conditions.

This structure is the best way to trade with the proper confirmation which is providing a high possibility setup. In the bearish since this will happen with a break of the lower boundary, a bounce of the 50-EMA in orange and a continuation downwards toward the next EMA-steps which will also end up the wave-cycle. The not that much possible bullish scenario will confirm when the pair advances in the channel and above the upper boundary to finally confirm it as support where a trade can be placed. In both cases it is highly important to wait on the proper confirmation before trading in the right direction because the pair is still in an indecisive state currently, therefore, we should not speculate and trade after confirmation occurred.

In this manner, thank you for watching the analysis, support for more market insight and all the best.
"Trading effectively is about accessing possibilities, not certainties."

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

Comment:

ANALYSIS UPDATE: GBPJPY completed the flag formation wave count with the final wave E to greatly bounce within the lower boundary support and finalize the whole flag formation with a massive breakout.