Technical Analysis: GBP/JPY – Key Levels and Strategic Setups
The GBP/JPY pair has been in a consistent uptrend since early 2023, following a primary ascending channel. However, the recent price action around key resistance levels indicates a potential shift.
Primary Trend:
The pair has respected a significant long-term support at 180, which has held strong throughout 2023. Recently, the price tested resistance around 196, potentially forming a reversal or consolidation pattern near this critical level.
Technical Indicators:
The TDIGA indicator on the daily chart signals a loss of bullish momentum, hinting at possible exhaustion or a reversal. While moving averages show a slight upward tilt, they indicate a mild bullish bias but without strong continuation force.
Chart Pattern
A symmetrical triangle formation suggests compression, often preceding a breakout. This setup signals a potential breakout in either direction. The 196 support zone remains key, and a break below it could trigger more aggressive selling.
Investment Strategies:
1. Bullish Breakout Strategy
Entry: Buy after a breakout and close above the triangle’s resistance trendline at 196.
Stop Loss: Below 190, under the immediate support.
Risk-Reward Ratio: 1:1 or higher.
Rationale: A breakout above 196 could lead to a rapid upward move due to increased liquidity, with potential for quick gains.
2. Resistance Reversal Strategy
Entry: Short the pair if there's a clear rejection pattern at resistance (e.g., doji or inverted hammer).
Take Profit: 185.000.
Stop Loss: Above 197.000.
Rationale: GBP/JPY has tested the resistance multiple times without breaking through. A failure here could prompt strong selling pressure, driving prices lower towards previous support zones.
3. Buy on Pullback
Entry: Buy near the 195 support if signs of reversal appear.
Take Profit: 200.
Stop Loss: Below 190.
Rationale: The 196 level has acted as a strong support, offering a good buy opportunity on any pullback, provided there are signs of renewed buying strength.
Final Thoughts:
The best opportunities lie at the edges of the triangle formation—buy after a confirmed breakout, or sell if resistance is rejected. The 196 support zone also offers a compelling low-risk buy opportunity. As always, watch for price action confirmation on lower timeframes.
Primary Trend:
The pair has respected a significant long-term support at 180, which has held strong throughout 2023. Recently, the price tested resistance around 196, potentially forming a reversal or consolidation pattern near this critical level.
Technical Indicators:
The TDIGA indicator on the daily chart signals a loss of bullish momentum, hinting at possible exhaustion or a reversal. While moving averages show a slight upward tilt, they indicate a mild bullish bias but without strong continuation force.
Chart Pattern
A symmetrical triangle formation suggests compression, often preceding a breakout. This setup signals a potential breakout in either direction. The 196 support zone remains key, and a break below it could trigger more aggressive selling.
Investment Strategies:
1. Bullish Breakout Strategy
Entry: Buy after a breakout and close above the triangle’s resistance trendline at 196.
Stop Loss: Below 190, under the immediate support.
Risk-Reward Ratio: 1:1 or higher.
Rationale: A breakout above 196 could lead to a rapid upward move due to increased liquidity, with potential for quick gains.
2. Resistance Reversal Strategy
Entry: Short the pair if there's a clear rejection pattern at resistance (e.g., doji or inverted hammer).
Take Profit: 185.000.
Stop Loss: Above 197.000.
Rationale: GBP/JPY has tested the resistance multiple times without breaking through. A failure here could prompt strong selling pressure, driving prices lower towards previous support zones.
3. Buy on Pullback
Entry: Buy near the 195 support if signs of reversal appear.
Take Profit: 200.
Stop Loss: Below 190.
Rationale: The 196 level has acted as a strong support, offering a good buy opportunity on any pullback, provided there are signs of renewed buying strength.
Final Thoughts:
The best opportunities lie at the edges of the triangle formation—buy after a confirmed breakout, or sell if resistance is rejected. The 196 support zone also offers a compelling low-risk buy opportunity. As always, watch for price action confirmation on lower timeframes.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.