harveytiven

GBPJPY Potential Short Opportunity

Short
OANDA:GBPJPY   British Pound / Japanese Yen
Monthly Analysis:
Price is at the level where it's making a third touch on the descending trendline from 2007. (I know, that's a long time ago ^_^)

Weekly Analysis:
Price has been in an uptrend since March 2020 and it has come to the most recent highs since February 2018 in the 155.600 zone. This is a place where sellers could be waiting if price is rejected.

Daily Analysis:
Since price approached this 155.600 zone, it has started forming a Head 'n' Shoulders pattern which if it is validated, could signal the start of a downwards move back to the 126.656.

My approach to this potential setup will involve waiting for price to:
1. be rejected at the 153.475 zone (Right Shoulder) with a Bearish Engulfing Candle (an entry here could work for me but would be aggressive)
2. close below the 149.252 (Neckline) which should also be lining up with the 200DMA (entering here could work for me as well)
3. retest the broken 149.252 level and continue downwards.

This is an ideal scenario but I generally like keeping trading simple :)

Please let me know what you think, I'm open to improving my analysis.

OANDA:GBPJPY
Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.