Short GBPJPY
Firstly, I believe GJ has room to go back up towards the 181.000 level, going off the basis of the previous 4hr candlestick which represents a reversal in price direction to the upside.
However, I am of the belief this may be GJ last push to the upside before heading back down to test the 200 MA level on the daily timeframe.
Why?
Well, if we are to check the previous highs on the 4hr timeframe from last week Friday, we can see GJ touched a high of around 182.300, then on the following trading day (so Monday), GJ reached a high of 182.150, the next day, 181.850, then 181.650 and finally 181.175.
And what's the common feature here?
They are all higher lows on the 4hr time frame, signifying that GJ could potentially be in a downtrend, rather than pushing for new highs, GJ has been making new higher lows.
Therefore, it is my belief that we could see GJ touch 181.000 before going down to retest the 180.000 level. For any significant movements the 180.000 level needs to broken first.
To note, fundamentals, more so, now than ever in the technical analysis of a trade. So I would pay close attention to the news, or even read some in the morning, even how boring it does sound, but it does help to make more insightful predictions of price movements.
Always good to hear other people's thoughts on my analysis. So feel free to let me know.
However, I am of the belief this may be GJ last push to the upside before heading back down to test the 200 MA level on the daily timeframe.
Why?
Well, if we are to check the previous highs on the 4hr timeframe from last week Friday, we can see GJ touched a high of around 182.300, then on the following trading day (so Monday), GJ reached a high of 182.150, the next day, 181.850, then 181.650 and finally 181.175.
And what's the common feature here?
They are all higher lows on the 4hr time frame, signifying that GJ could potentially be in a downtrend, rather than pushing for new highs, GJ has been making new higher lows.
Therefore, it is my belief that we could see GJ touch 181.000 before going down to retest the 180.000 level. For any significant movements the 180.000 level needs to broken first.
To note, fundamentals, more so, now than ever in the technical analysis of a trade. So I would pay close attention to the news, or even read some in the morning, even how boring it does sound, but it does help to make more insightful predictions of price movements.
Always good to hear other people's thoughts on my analysis. So feel free to let me know.
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.