GBP/JPY rejects 156 whilst JPY break bearish flag

Orlando Gutierrez Learn 2 Trade

Key Support: 156.00 - 156.40.

Key Resistance: 157.40 - 158.20.

The GBP has appreciated 6.25% against the JPY on a massive bearish breakout on the JPY Yen side 2 weeks ago. The level that was capping the upside in this market was the 156.00 (Jan. 2021 highs).

Once the GBPJPY broke with a pullback structure and the 156.00, I've been waiting for a pullback to this level for new longs to add to my already in profit position 700 pips+). The immediate bearish structure (flag) is still in play and not until a definite breakout happens longs will be in play.

The JPY on the other side has pulled back 1.75% from Oct. 21st lows and its immediate bullish structure is still intact.

For shorts here I need to see a clean break of last Friday's lows which will trigger those possible GBPJPY longs.

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Author

Orlando Gutierrez

Learn 2 Trade

Orlando has been involved in the financial markets for about 10 years. His focus is Global Macro and he is a strong believer that the best way to trade the currency markets is focusing on the big picture and holding on to big macro trends.

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