GBPJPY Daily – Have the Bulls got what it takes to conquer

Following a short downtrend structure that started forming on the GBPJPY Daily chart, it seems like the Bears might be running out of steam. On the 30^th of October, a lower bottom formed at 134.401 but the downward momentum could not be sustained. The currency pair then broke through the 15 and 34 Simple Moving Averages with the Momentum Oscillator briefly touching the 100 baseline that divides the positive and negative territories.

The upward momentum continued until it hit a possible critical resistance level at 137.386 on the 4^th of November. The Bears then tried their best to regain control but a support level was formed the next day at 135.075 with a Hammer Candles pattern and a resulting possible higher bottom completed. This is the first indication for technical traders of a possible change in trend from consecutively lower tops and bottoms to consecutively higher tops and bottoms.

If the GBPJPY breaks through the critical resistance level at 137.386, then three possible price targets can be calculated from there. Applying the Fibonacci tool to the top of the resistance level at 137.386 and dragging it to the conformed support level at 135.075, the following targets may be considered. The first target can be estimated at 138.814 (161 %). The second price target may be considered at 141.125 (261.8%), and the third and final target could be projected at 144.864 (423.6%).

If the established 135.075 support level is broken, the anticipated price targets above are annulled and the whole scenario must be re-evaluated.

As long as the GBPJPY price structure continues to make higher tops and bottoms, the outlook for the currency pair on the Daily time-frame will remain bullish.

For more information, please visit: FXTM

Nigel Frith

Share

Tweet

Safest Forex Brokers 2023

	Broker	Info	Best In	Customer Satisfaction Score
#1	72% of retail CFD accounts lose money. Founded: 2014	Global Forex & CFD Broker	Best Trading Conditions Visit broker	4.9
#2	Your capital is at risk Founded: 2014	Global Forex Broker	BEST SPREADS Visit broker	4.8
#3	Your capital is at risk Founded: 2006	Globally regulated broker	BEST CUSTOMER SUPPORT Visit broker	4.9
#4	82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Founded: 2008	Global CFD Provider	Best Trading App Visit broker	5
#5	Between 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010	Global Forex Broker	Low minimum deposit Visit broker	4.9
#6	76% of CFD traders lose money Founded: 2007	Global CFD & FX Broker	ALL-INCLUSIVE TRADING PLATFORM Visit broker	4.9
#7	Your capital is at risk Founded: 2009, 2015 and 2017	Global Forex Broker	Low minimum deposit Visit broker	5
#8	Your capital is at risk Founded: 2006	CFD and Cryptocurrency Broker	CFD and Cryptocurrency Visit broker	5

Forex Fraud Certified Brokers

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.