SHORT GBP/JPY from 199.70
The high of 200.55 back on 24th April saw a deeep and rapid decline in GBP/JPY.
I SHORTED this pair at 200.18 at the end of May and exited when the price started to head north.
I SHORTED again after when the price returned to the 200 level and exited for 80+ pips when the price hit the 200 EMA on H1.
2 candles ago GBP/JPY BULLS pushed the price back above the 200 and the last H1 candle was a wide doji indecison candle as was the last H4 candle.
It cannot be ruled out that GBP/JPY BULLS wont push the price higher from these levels, the signs are that any move higher presents an opportunity to SELL.
The H1 Andean OScillator is signalling SELL on H1.
The last 4 H1 candles have closed near the 200 EMA.
The RSI is heading south on H1.
The MACD is signalling SHORT on H1 and is moving under zero.
It has to be remembered that all JPY pairs are in an uptrend.
GBP/JPY has been heading north since August 2020 so this pullback is just that - a pullback to lower ground.
How deep is the question.
Previously we've seen GBP/JPY pull back to the 50 EMA on D1 which comes in at 196.00 are so its well possible that this level could be reached but news over the next few days will impact direction.
Today we have Final Manufacturing PMI and ISM Manufacturing PMI out of the US.
Its unclear how much this pair will be impacted on the print so tighten stops just to be safe.
I SHORTED this pair at 200.18 at the end of May and exited when the price started to head north.
I SHORTED again after when the price returned to the 200 level and exited for 80+ pips when the price hit the 200 EMA on H1.
2 candles ago GBP/JPY BULLS pushed the price back above the 200 and the last H1 candle was a wide doji indecison candle as was the last H4 candle.
It cannot be ruled out that GBP/JPY BULLS wont push the price higher from these levels, the signs are that any move higher presents an opportunity to SELL.
The H1 Andean OScillator is signalling SELL on H1.
The last 4 H1 candles have closed near the 200 EMA.
The RSI is heading south on H1.
The MACD is signalling SHORT on H1 and is moving under zero.
It has to be remembered that all JPY pairs are in an uptrend.
GBP/JPY has been heading north since August 2020 so this pullback is just that - a pullback to lower ground.
How deep is the question.
Previously we've seen GBP/JPY pull back to the 50 EMA on D1 which comes in at 196.00 are so its well possible that this level could be reached but news over the next few days will impact direction.
Today we have Final Manufacturing PMI and ISM Manufacturing PMI out of the US.
Its unclear how much this pair will be impacted on the print so tighten stops just to be safe.
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