GBP/JPY Price Analysis: Brears find an opportunity on the weekly candle
|- GBP/JPY bears are liming up for entry below near tern support structure.
- The weekly wick presents a swing trading opportunity.
The price action the GBP/JPY has corrected a daily impulse and bears are now looking for the fading opportunity.
The 4-hour time frame offers a critical support structure that, if broken and retested, will offer a high probability trade set up to the downside.
The following is a top-down analysis starting with the monthly chart, as follows:
Monthly chart
The price is coiled into a wedge and there is strong momentum in the monthly bearish candle.
The wick represents and opportunity
This wick is simply a daily correction that could be sold into.
Fibonacci retracements are deep enough
The correction is significant enough to move down to a 4-hour time frame and monitor the price action for an entry opportunity.
4-hour setup
A sell limit can be placed if the price breaks the support stricture.
On the other hand, looking to the hourly time frame, GBP/JPY Price Analysis: 200-HMA guards immediate upside below 135.00, there is a near term risk that this set up will take some time if the 200-hour moving average gives out.
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