Hi Traders! Today I am sharing with you my GBPJPY short term forecast and technical analysis post. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting, useful tips and hacks about the MT4 platform could be found here. If you would like to learn more about the way we trade and the technical analysis we use then check out the Home Trader Club Spoiler alert – free memberships are available
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GBPJPY H4(4 Hours) Chart Analysis – Heikin Ashi Candles, Bearish Trend Pattern, Two Key Resistance Zones
On the H4 chart, based on the Heikin Ashi candles we can see that currently, we have strong bearish bodies in downward moving market conditions so it basically reflects a bearish environment. In addition to this, the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently it looks like a correction is happening. Also, while measuring the bearish trend pattern using the Fibonacci retracement tool, we have two key resistance zones that have formed. The first key resistance zone is formed by the 23.6%(190.842) and 38.2%(192.554) Fibonacci retracement zones. The second key resistance zone is formed by the 50%(193.938) and 61.8%(195.321) Fibonacci retracement zones. Until these two key resistance zones (marked in red) shown in the image below hold, my short-term view remains bearish here and I expect the price to move lower further.
Trading Tips
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short-term sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
Also, don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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Arvinth Akash
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