GJ Different ScenariosAs you can see in the 4H chart, GBPJPY was in a sharp downtrend and after dropping significantly, price started to rise and broke the blue key resistance zone and fixed above it.
We are still not sure if price has started a new uptrend or it is just in a correction phase and willing to drop again.
The Blue area which is between 153.550 - 153.750 is an important zone for us:
If price can’t break this zone to the downside and gets rejected from it, we should wait for the red resistance level at 154.200 to be broken out and price closes a bullish confirmation candle above this level, to expect a growth first to the next major high at 154.700, and in the case of an upside breakout on this level, the next long-term target would be around 155.550
On the other hand, since price was in a sharp downtrend and if we assume this uptrend as a correction, price has retraced 61.8% of the previous downside move and is ready to drop again:
If the blue area broken out to the downside and price closed a bearish confirmation candle below this zone, we can expect a fall first to 153.280, and in the case of a downside breakout on this level, the next target would be the last major low at 152.400
