GBPJPY - Selling into rallies with the upside limited
|Technical
Monthly: The cross is trading between the 38.2% and 50% pullback level (of 152.09 and 160.45). Price action in February posted a bearish Outside Month, often an indication that the rally is over and the start of a new downward bias.
Weekly: The weekly chart highlights mixed trading for the last 69 weeks as we hold within a bearish Ascending Wedge formation. A break of trend line support (at 146.35) and the measured move target is located at 136.00. We can note higher highs and lows. Bespoke resistance is seen at 154.88.
Daily: We have a Fibonacci confluence zone at 154.10. This is a 78.6% pullback of the 156.55-145.00 selloff and a 161.8% extension from the 145.00-150.53 rally. With UK earnings data release out later today, we could see a spike through this important zone to trigger our short.
Action:
We look to Sell at 154.80
Stop: 156.20
Targets: 151.70 and 146.50
Article produced by Pia First for Orbex Limited
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