The British Pound continued to rocket higher against the Japanese Yen, but it looks like the GBPJPY is forming a major top. There is a monster divergence formed on the monthly chart, and the pair is also on the verge of completing five waves from the lows. On the weekly chart, the last wave might duplicate and then form a top around the 197.00 area, which is where we might consider selling with divergences on the lower timeframe.
Alternatively, if the pair moves lower from the current levels, forms a lower lows, and corrects higher, then we can enter a sell trade.
Technical Analysis
Monthly – Monster divergence on the monthly chart, which 5 waves up.
Weekly – Wave duplication resistance around 197.00.
Entry:
H4 – We can enter a sell trade for the GBPJPY pair if it moves lower from the current levels, forms a lower lows, and corrects higher.
Target 1: 191.00
Target 2: 189.00
Stop Loss: Above the high created before entering into the trade.
Video Explanation:
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