GBPJPY Bearish Retracement Opportunity
After a strong week for GBPJPY with some Brexit news driving the pair higher, the price has reached a weekly resistance, the yellow line. This pair to me is looking like a bearish retracement is imminent. The weekly candle shows an upper wick rejecting 148.500 level and the daily shows a doji followed by a grave stone doji at the weekly resistance level. Buyers look to be losing steam at this level.
Let's not forget this pair is in a steady overall downtrend. Last week this pair broke the descending trend line resistance and pushed above it to the weekly support as mentioned above, however the 4 hour time frame shows a strong bearish pin bar as well as another bearish candle to close the week on at the weekly resistance. I am therefore anticipating a bearish retracement to the overall trend line which is now a support and also lies on the 4H support of 146.000. Coincidently this level is also around the 50% Fibonacci Retracement level too. MA and EMA are crossing and based on all of the above, I am therefore looking to enter bearish to catch the retracement of around 150 pips or so.
I will look to be out of this trade by the middle of the week. The pound gaining strength and along with the Brexit deadline coming closer and the threat of a recession ever present, I also anticipate the pound will gain more strength from this 146.000 support after testing it before falling drastically depending on news and the current financial state in the next few months.
Let's not forget this pair is in a steady overall downtrend. Last week this pair broke the descending trend line resistance and pushed above it to the weekly support as mentioned above, however the 4 hour time frame shows a strong bearish pin bar as well as another bearish candle to close the week on at the weekly resistance. I am therefore anticipating a bearish retracement to the overall trend line which is now a support and also lies on the 4H support of 146.000. Coincidently this level is also around the 50% Fibonacci Retracement level too. MA and EMA are crossing and based on all of the above, I am therefore looking to enter bearish to catch the retracement of around 150 pips or so.
I will look to be out of this trade by the middle of the week. The pound gaining strength and along with the Brexit deadline coming closer and the threat of a recession ever present, I also anticipate the pound will gain more strength from this 146.000 support after testing it before falling drastically depending on news and the current financial state in the next few months.
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