FX.co ★ GBP/JPY

GBP/JPY MARKET ANALYSIS H4 Timeframe The price movement of the GBPJPY pair this week tends to increase and is not much different from the previous week. Because the open prices and close prices are only slightly different, although the high prices of 196.15 are still lower than the high prices of 196.28. The price increase rally is still supported by the weakening outlook for the Japanese Yen currency which failed to try to strengthen in the middle of the week. The price had fallen for two days reaching low prices of 192.70 but the movement below the EMA 50 had not been able to reach the SMA 200 as dynamic support. In the end, the price was able to continue the rally consistently after moving back above the two Moving Average lines. With the price increase being able to stay above the psychological level of 195.00, it seems that it has succeeded in reaching the resistance (R1) of 195.80 and the psychological level of 196.00. Looking at the last candlestick pattern that was formed, it seems that there has been no reversal signal for a price reversal or a downward correction. Only from the perspective of the Stochastic indicator, it may not be long before the price increase reaches the optimal buying saturation point. The current parameter has entered the overbought zone at level 90 - 80, which means that when crossing it will tend to stop the price from moving up and potentially experience a decline as a correction phase first. It should also be noted that prices that fail to continue the upward rally can later form a reversal signal from the triple top pattern. It is likely that the price will be corrected down towards around EMA 50 or pivot point (PP) 194.24. A lower correction can reach SMA 200 but to reach support (S1) 192.20 is still too difficult. This is because the price direction projection indicated by the Awesome Oscillator (AO) indicator is still in an uptrend momentum. Moreover, the volume histogram above level 0 or the positive area appears to remain wide and green. As long as the histogram does not cross into the negative area or below level 0, the price movement direction projection tends to increase.

Setup entry position: Trading options wait for the BUY moment according to the trend direction conditions that still appear bullish. Entry position is placed when the price is corrected down experiencing rejection around EMA 50 or pivot point (PP) 194.24. Target take profit resistance (R1) 195.80 and stop loss at SMA 200 as dynamic support or at least get a Risk: Reward ratio of 1:1. Initial confirmation if the Stochastic indicator parameter crosses around level 50 when in the process of heading to the oversold zone at level 20 - 10. The AO indicator histogram keeps the volume widening above level 0 or the positive area.