The chart provided is a 4-hour (H4) analysis of GBP/JPY (GJ), incorporating Fibonacci retracement levels, a projected bullish move, and potential daily targets. Below is a detailed breakdown with the inclusion of Fair Value Gaps (FVGs) and session theory for a more comprehensive outlook.
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Key Observations:
Fibonacci Levels and Price Action:
1. Fibonacci Retracement Zone:
- The 0.5 (190.420) and 0.618 (189.804) levels are highlighted as key retracement zones where price may pull back before continuing its upward trajectory.
- Price is currently near 190.868, indicating it is within range to test these levels for support before a potential bullish continuation.
2. Projected Bullish Move:
- A green arrow indicates an anticipated bullish move from the Fibonacci retracement zone toward the daily target at 193.059.
- This projection suggests a higher low formation at the retracement zone, aligning with bullish market structure.
Fair Value Gaps (FVGs):
- FVG Identification:
- The chart does not explicitly mark FVGs, but they can be inferred in areas where price has moved impulsively, leaving inefficiencies or untested zones.
- A potential FVG exists between the 0.5 and 0.618 Fibonacci levels, where price may revisit to fill the imbalance before resuming its upward momentum.
- Role of FVGs in the Setup:
- The FVG within the retracement zone aligns with the expectation of a pullback to support levels, offering high-probability entry points for long positions.
Session Theory:
1. Asian Session:
- During the Asian session, price may consolidate or test the Fibonacci retracement zone as liquidity builds for the next move.
- Watch for low volatility during this session, which could set up the pullback.
2. London Session:
- The London session often brings increased volatility and directional moves.
- A bullish breakout from the retracement zone could occur during this session, aligning with the projected upward move toward 193.059.
3. New York Session:
- The New York session may provide additional momentum to extend the bullish move or retest breakout levels.
- If price reaches near the daily target during this session, expect potential resistance or consolidation around 193.059.
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Key Observations:
Fibonacci Levels and Price Action:
1. Fibonacci Retracement Zone:
- The 0.5 (190.420) and 0.618 (189.804) levels are highlighted as key retracement zones where price may pull back before continuing its upward trajectory.
- Price is currently near 190.868, indicating it is within range to test these levels for support before a potential bullish continuation.
2. Projected Bullish Move:
- A green arrow indicates an anticipated bullish move from the Fibonacci retracement zone toward the daily target at 193.059.
- This projection suggests a higher low formation at the retracement zone, aligning with bullish market structure.
Fair Value Gaps (FVGs):
- FVG Identification:
- The chart does not explicitly mark FVGs, but they can be inferred in areas where price has moved impulsively, leaving inefficiencies or untested zones.
- A potential FVG exists between the 0.5 and 0.618 Fibonacci levels, where price may revisit to fill the imbalance before resuming its upward momentum.
- Role of FVGs in the Setup:
- The FVG within the retracement zone aligns with the expectation of a pullback to support levels, offering high-probability entry points for long positions.
Session Theory:
1. Asian Session:
- During the Asian session, price may consolidate or test the Fibonacci retracement zone as liquidity builds for the next move.
- Watch for low volatility during this session, which could set up the pullback.
2. London Session:
- The London session often brings increased volatility and directional moves.
- A bullish breakout from the retracement zone could occur during this session, aligning with the projected upward move toward 193.059.
3. New York Session:
- The New York session may provide additional momentum to extend the bullish move or retest breakout levels.
- If price reaches near the daily target during this session, expect potential resistance or consolidation around 193.059.
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.
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.