GBP/JPY Technical Analysis
- Bearish downtrend formation
- Sequence trade is playing out
- We should continue lower
- 162.50 and 162.00 are targets
- 164 pips is the ATR
MEGATREND MAs: Bearish
H1 Chart GBP/JPY
- Double bottom point 1
- High
- Double bottom point 2
- Final target
The GBP/JPY is moving lower as a part of the sequence trade that has started on a weekly time frame. Weekly shows bearish CBR pattern. The Daily is moving down along with the H4 time frame as the price is running away from the MAs. H1 price is retracing but there was an IO pattern 2 bars ago. Additionally when we have 100 % risk on scenario we could see:
1.Gold up
2.Commodities prices down
3.Equities down
4.Yen strengthens as a result
During the risk on scenario the Japs can get cheap credit, so they invest overseas heavily so when it’s risky, they bring the money back creating demand for Yen. Technically we could even go lower than the final target but the first thing for bears is that the price closes below 163.34 in H1 timeframe. Have in mind that the intraday target is 162.04 according to the ATR. It’s Monday and we could see some retracement before going fully down.
This analysis, the sequence trade and the IO pattern are a part of the Megatrend trading course. I have 1 long position that I will maintain. The intraday target is 162.04 while the intraweek target is 162.00. There is no swing target yet .
Cheers and safe trading,
Nenad
