Technical Analysis: GBP/JPY – Key Levels and Strategic Setups

The GBP/JPY pair has been in a consistent uptrend since early 2023, following a primary ascending channel. However, the recent price action around key resistance levels indicates a potential shift.

Primary Trend:
The pair has respected a significant long-term support at 180, which has held strong throughout 2023. Recently, the price tested resistance around 196, potentially forming a reversal or consolidation pattern near this critical level.

Technical Indicators:
The TDIGA indicator on the daily chart signals a loss of bullish momentum, hinting at possible exhaustion or a reversal. While moving averages show a slight upward tilt, they indicate a mild bullish bias but without strong continuation force.

Chart Pattern
A symmetrical triangle formation suggests compression, often preceding a breakout. This setup signals a potential breakout in either direction. The 196 support zone remains key, and a break below it could trigger more aggressive selling.

Investment Strategies:

1. Bullish Breakout Strategy
Entry: Buy after a breakout and close above the triangle’s resistance trendline at 196.
Stop Loss: Below 190, under the immediate support.
Risk-Reward Ratio: 1:1 or higher.
Rationale: A breakout above 196 could lead to a rapid upward move due to increased liquidity, with potential for quick gains.

2. Resistance Reversal Strategy
Entry: Short the pair if there's a clear rejection pattern at resistance (e.g., doji or inverted hammer).
Take Profit: 185.000.
Stop Loss: Above 197.000.
Rationale: GBP/JPY has tested the resistance multiple times without breaking through. A failure here could prompt strong selling pressure, driving prices lower towards previous support zones.

3. Buy on Pullback
Entry: Buy near the 195 support if signs of reversal appear.
Take Profit: 200.
Stop Loss: Below 190.
Rationale: The 196 level has acted as a strong support, offering a good buy opportunity on any pullback, provided there are signs of renewed buying strength.


Final Thoughts:
The best opportunities lie at the edges of the triangle formation—buy after a confirmed breakout, or sell if resistance is rejected. The 196 support zone also offers a compelling low-risk buy opportunity. As always, watch for price action confirmation on lower timeframes.
Chart PatternsTrend Analysis

免责声明