FOREX Chart Of The Day: GBPJPY Finds Resistance
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.
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In this video, we’re going to take a look at GBP/JPY as we think we’re going to see a little bit of a pullback, which could offer us a little bit of an opportunity to go short on the markets.
So, if we look at this daily time frame. I’m just looking left, and we can see that the market has been up-trending for a little while now. But, if we actually place a resistance line in here, or even just slightly lower, and look left. We can see that the market has found numerous resistance and supports around this area around that 141 area.
You can see here, the market is now starting to kind of reject that level. Now, in the theory of trend, if the market’s moving to the upside, I would expect a retest of this structure high just through here. So just actually diving onto this, a little bit closer, we can see that the market is rejecting this area. We can see we’ve had a couple of bearish closes yesterday, which was suggesting that we were going to start seeing that pullback now.
I like the idea of price coming back into this previous structure point, just through here. Because for whatever reason, the market found resistance a number of times here. It broke through, found initial support, and now we’re pulling back into that area where the market could then either find more support or break to the downside.
So what I’m looking for in the short term is a pullback into this zone. If I go down into the four-hour time frame, then we can see that we don’t have any kind of changes in the four-hour trend just yet.
Before, our trend was still very much to the upside. However, if we go to an hourly, we can see that the market is now starting to break down ever so slowly.
You can see we have lower lows, lower highs, and we even got this little breakout area – just through here – which is the area I quite like if the market does break and close below. If we do get that break and close below these lows – just through here on this hourly time frame. So, what I’m looking for is two minimum closes below these lows in here. Then tomorrow, I’ll expect the market to pull back, retest, and then we could look for a short-term short opportunity down to that 140 area for a short-term trade.
At that point then, it obviously does the market rally, or does it continue to break to the downside? So I’d have to wait and see. But at the moment, with these daily bearish closes, I’d expect that momentum to continue into the next day.
The GB Pound has had a pretty bearish day across the board. So looking at this, to me, looks like GBP/JPY may come and retest this 140 area, and then we’ll see what happens after that point.
Thanks for watching this video update, and I’ll catch you in the next one.
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