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Dragon Riders GBP/JPY
- #28,191
- Jan 21, 2018 3:46pm Jan 21, 2018 3:46pm
- Joined Dec 2015 | Status: Trader | 8,751 Posts
If you are tracking GBPJPY this week, consider this technical perspective.
Price action on the GBPJPY has been disposed northward for quite a while. An ascending channel (bound by magenta coloured lines) can be seen on the weekly timeframe from April 2017. This followed a decline which began in August 2015. The most recent price action is around the 38.2 Fib retracement zone of the decline but operating in a consolidation phase. Within the middle of the main ascending channel (magenta), a minor and narrower ascending channel (navy) has formed. In the last three weeks, price action has been sideways in this minor channel and proximal to a horizontal resistance zone around the 152.150/154.140 area. Technically, the market mode is ambivalent and requires further clarity of price action in the next few days; stepping aside is advised.
On the H4 time frame, price action has rejected the resistance of the minor channel (navy) seen on the weekly time frame. However, on Friday, bulls managed to push price northward to around the 32.8 Fib retracement of the most recent swing down. Bears resisted the move and pressed price action southward. If bulls successfully resist bears in the early part of this week, we may see price action move further north to around the 50/61.8 Fib zone before a southward turn around; this area (153.690/154.020) is bound by blue coloured lines on the attached H4 chart.
I may be wrong. Trade safe and prosper.
KP
Price action on the GBPJPY has been disposed northward for quite a while. An ascending channel (bound by magenta coloured lines) can be seen on the weekly timeframe from April 2017. This followed a decline which began in August 2015. The most recent price action is around the 38.2 Fib retracement zone of the decline but operating in a consolidation phase. Within the middle of the main ascending channel (magenta), a minor and narrower ascending channel (navy) has formed. In the last three weeks, price action has been sideways in this minor channel and proximal to a horizontal resistance zone around the 152.150/154.140 area. Technically, the market mode is ambivalent and requires further clarity of price action in the next few days; stepping aside is advised.
On the H4 time frame, price action has rejected the resistance of the minor channel (navy) seen on the weekly time frame. However, on Friday, bulls managed to push price northward to around the 32.8 Fib retracement of the most recent swing down. Bears resisted the move and pressed price action southward. If bulls successfully resist bears in the early part of this week, we may see price action move further north to around the 50/61.8 Fib zone before a southward turn around; this area (153.690/154.020) is bound by blue coloured lines on the attached H4 chart.
I may be wrong. Trade safe and prosper.
KP
Do your homework, follow the footprints of smart money
{quote} Nice catch. At first I thought we were going to see a retracement back to sub 151.60, but I also see a H&S pattern on the 4 hour. If it holds true, we could see a measured run to 155.00{image}
- #28,196
- Jan 22, 2018 11:34am Jan 22, 2018 11:34am
- Joined Oct 2007 | Status: Saudi Arabia/Dubai | 3,584 Posts
