GBP/JPY LONG Top-Down Technical Analysis:
The monthly time frame shows a strong bullish signal
Weekly also is bullish biased rather than bearish as candles are making higher highs and higher lows
Coming to the daily time frame we can clearly see how the trend has switched from bearish to bullish as soon as we formed a double bottom and broke the previous lower high formed.
Now as we created a new high , price should come and retrace at a certain level (most likely around 133.500-fib 61.80% where we see a lot of confluence), thus creating a new support (new higher low) to continue its bullish movement.
In the 4-Hour time frame, price was bouncing within the channel until it broke out of it to the downside so now, as mentioned earlier, this movement shows that price is more likely to retrace at lower levels to create a new support and continue its overall bullish movement.
Target Profit 1: 1st purple zone at fib -27%
Target Profit 2: highest purple zone or at fib -61.80% (depends on the price movement...though safer at -61.80%)
*Keep in mind that fundamental analysis may disrupt price action at any given time, specially with sudden news being announced and creating a new sentiment in the market.
