The GBPJPY price has dropped significantly as the risk sentiment shifted to risk off causing JPY and USD to strengthen. Could this offer us a short opportunity?
Watch the video to learn more…
The price of GBPJPY has dropped and broken through yesterday’s low after the stock market dropped early in the European session.
If this continues we can expect the trend to continue to the next major support of 149.30.
When the daily trend downtrend enters an impulse phase we see the 4hr trend make lower lows and lower highs offering short opportunities on pullbacks.
The key levels to watch on GBPJPY are the previous lows of the 4hr trend.
The first resistance level to watch is around 150.35, if the price forms bearish price action here we can consider a short position to the lows.
Another resistance to consider is the most recent lows at 150.90 as this level was where the key selling pressure began from.
The trend on the 15 minute time frame is important due to the fact that it can show us when an impulse phase is forming on a trend.
If the market reaches these resistance points and forms reversal patterns like the head and shoulders or a double top we can look for short entries.
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