GBP/JPY Price Forecast – Inverse Head & Shoulders Setup
GBP/JPY is showing the formation of an Inverse Head & Shoulders pattern, which could signal a reversal to the upside. Traders should wait for a confirmed break of the trendline with a strong bullish candle to enter long positions.
📊 Technical Breakdown
📍 Pattern: Inverse Head & Shoulders (Bullish Reversal)
📍 Trendline Resistance: Watch for a clean break of the trendline connecting the right shoulder and head.
📍 EMA 200: If price breaks above the EMA 200, this will add more confirmation for the bullish move.
🔎 Key Confirmation Signals:
✅ Break Above Trendline Resistance – A strong bullish candle closing above the trendline confirms the pattern.
✅ EMA 200 Cross: Price breaking above the 200 EMA would indicate a shift to a bullish market structure.
✅ Momentum Indicators: Look for RSI crossing above 50 and MACD bullish cross for added confirmation.
📉 Technical Target Levels:
📈 194.500 – Initial upside target
📈 198.500 – Psychological resistance level
⚠️Risk Management & Trading Plan
🔸 Entry: After the trendline break and confirmation of a bullish candle
🔸 Stop Loss: Below the head or right shoulder to manage risk
🔸 Take Profit: Scaling out at target levels with optimal risk-to-reward
🔸 Invalidation: If price fails to break the trendline or falls back below it, the setup could be invalidated.
📢 Final Thoughts
This is a high-potential reversal setup, but always wait for confirmation before entering the market. Keep an eye on potential news events that might affect GBP/JPY.
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📊 Technical Breakdown
📍 Pattern: Inverse Head & Shoulders (Bullish Reversal)
📍 Trendline Resistance: Watch for a clean break of the trendline connecting the right shoulder and head.
📍 EMA 200: If price breaks above the EMA 200, this will add more confirmation for the bullish move.
🔎 Key Confirmation Signals:
✅ Break Above Trendline Resistance – A strong bullish candle closing above the trendline confirms the pattern.
✅ EMA 200 Cross: Price breaking above the 200 EMA would indicate a shift to a bullish market structure.
✅ Momentum Indicators: Look for RSI crossing above 50 and MACD bullish cross for added confirmation.
📉 Technical Target Levels:
📈 194.500 – Initial upside target
📈 198.500 – Psychological resistance level
⚠️Risk Management & Trading Plan
🔸 Entry: After the trendline break and confirmation of a bullish candle
🔸 Stop Loss: Below the head or right shoulder to manage risk
🔸 Take Profit: Scaling out at target levels with optimal risk-to-reward
🔸 Invalidation: If price fails to break the trendline or falls back below it, the setup could be invalidated.
📢 Final Thoughts
This is a high-potential reversal setup, but always wait for confirmation before entering the market. Keep an eye on potential news events that might affect GBP/JPY.
🔔 Follow for more updates and analysis! 🔥
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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.
🚀 Join My Telegram Channel for Daily Signals!
Get high-accuracy signals daily with expert analysis and trend-based strategies. Stay ahead of the market and maximize your profits! 📈💰
📌 t.me/JosProTrader
🔥 Don’t miss out—join today! 🔔
Get high-accuracy signals daily with expert analysis and trend-based strategies. Stay ahead of the market and maximize your profits! 📈💰
📌 t.me/JosProTrader
🔥 Don’t miss out—join today! 🔔
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.