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

Theunis Kruger
Man in suit holding a crystal ball with currency symbols inside

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 30th 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 4th 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.

GBPJPY Daily Price Chart

For more information, please visit: FXTM


Theunis Kruger

Latest news

MetaTrader MT4 and MT5 Disappear From Apple’s App Store
Social media is abuzz regarding reports that MetaQuotes apps have been removed from the Apple App Store. Read more
The New Crypto Scams To Look Out For After ‘The Merge’
After six years of delays, Ethereum’s ‘The Merge’ has finally been completed. Read more

Safest Forex Brokers 2022

Broker Info Best In Customer Satisfaction Score
#1 AvaTrade LogoYour capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
BEST CUSTOMER SUPPORT Visit broker
4.9
#2 BlackBull Markets LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8
#3 66% of retail CFD accounts lose money Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
4.9
#4 Forex Broker eToro Logo67% of CFD traders lose Founded: 2007 Global CFD & FX Broker
Number One Broker
ALL-INCLUSIVE TRADING PLATFORM Visit broker
4.9
#5 Plus500 Forex broker logo72 % 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 Broker
Number One Broker
Best Trading App Visit broker
5

    Forex Fraud Certified Brokers

    Plus500 Small Logo
    City Index Logo
    XM Logo
    IC Markets Logo
    AvaTrade logo
    BlackBull Markets Logo
    LegacyFX Small Logo
    Forex.com Logo
    HYCM Logo
    skilling logo
    OctaFX Logo
    IQ Option Logo
    Exness Small Logo
    ATFX Logo