GBPJPY Short Term Forecast And Technical Analysis

4
98
GBPJPY Short Term Forecast And Technical Analysis

Hi Traders! GBPJPY Short Term Forecast And Technical Analysis is here. 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 Traders Academy Club Spoiler alert – free memberships are available!

GBPJPY H4(4 Hours) Chart Analysis – Lower Lows, Strong Resistance Zone, Bearish Hidden Divergence

On the H4 chart, we could see that the price which was moving lower has created lower lows based on the MACD indicator which we may consider as a sign of gaining momentum towards the bearish side. Also, we had a strong support zone and the price which was moving lower has broken below this and held below it. After the breakout this strong support zone is acting as a strong resistance zone for us. Currently the price which is moving higher has reached this strong resistance zone and is bouncing lower from in this zone. Until this strong resistance zone holds I expect short term bearish moves to happen here. In addition to this, the price has created a bearish hidden divergence between the first high that has formed at 166.330 and the second high that has formed at 163.053, based on the MACD indicator, which we may consider as evidence of bearish pressure. So everything looks good here for the bears and we may now move down to lower timeframe and see if we can find evidences supporting this short term bearish view.
GBPJPY Short Term Forecast And Technical Analysis

 

 

GBPJPY H1(1 Hour) Chart Analysis – Key Resistance Zone, Bearish Divergence

Looking at the H1 chart, we could see that, we have a key resistance zone that has formed based on the 61.8%(163.698) Fibonacci retracement level of the strong bearish move and the 100%(164.423)Fibonacci expansion level of the first wave of the correction. The price which was moving higher has reached this zone, respected it and is bouncing lower from this zone. In addition to this, we had a bearish divergence that has formed between the first high that has formed at 162.681 and the second high that has formed at 163.952 based on the MACD indicator, we may consider this as evidence of bearish pressure. Also, currently there are no signs opposing this short term bearish view. So based on all this, until the key resistance zone holds my short term view remains bearish here and I expect the price to move lower further.
GBPJPY Short Term Forecast And Technical Analysis

Technical Analysis & Forecast Summary

GBPJPY H4(4 Hours) Chart Analysis 

  • Lower Lows, Strong Resistance Zone, Bearish Hidden Divergence

GBPJPY H1(1 Hour) Chart Analysis 

  • Key Resistance Zone, Bearish Divergence

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.

You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.

Not sure how to enter a trade? Spot reversals (bounces)? Not sure how to spot breakouts?

I invite you to

Join Traders Academy Club Now

And improve your trading with us.

Also, you can get one of our strategies free of charge. You will find all the details here

 

If you have any further questions, don’t hesitate to drop a comment below!

 

Happy Trading!

Arvinth Akash
Traders Academy Club Team.

 

Advertisement
HotForex

Click To Join Our Community Telegram Group

Advertisement

How to Invest in Amazon

4 Advantages of Amazon Investing - Read More

  • Amazon’s net a bullish 450% 5-year gain
  • Amazon’s ROI is 6x’s the S&P 500 Index of 67%
  • AMZN shares may hit +$10,000 by mid-November 2024
  • Amazon’s growth since IPO tops more than 12,000%

Now is the time to invest in Amazon

Subscribe
Notify of
guest

4 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments
cezar
cezar
10 days ago

thank you for the insight. what would be the target here ?

Arvinth
Arvinth
Reply to  cezar
10 days ago

Hi Cezar, you are most welcome. My first target was the last low which has now been reached. The second target would be around 160.

cezar
cezar
Reply to  Arvinth
9 days ago

thank you, Arvinth.

Last edited 9 days ago by cezar
Arvinth
Arvinth
Reply to  cezar
8 days ago

You are welcome Cezar 🙂