- GBP/JPY is moving in a bullish trend, resting at resistance and awaits the next catalyst.
- Bulls looking for a break and restest of the resistance structure.
The price of GBP/JPY has been in a chop since rallying from the 136 area in mid-November, but has continued to print higher highs.
The following is a top-down analysis and an update to the prior series of analysis:
- The Chart of the Week: GBP/JPY bulls expecting upside extension
- GBP/JPY Price Analysis: Bullish Reverse H&S, 1:2 R/R mkt order, 1:3 R/R ext
- GBP/JPY Price Analysis: Bullish 4-hour close opens prospects of 3R extension
The price retested the support structure, as highlighted o the chart above with the red doji candle and has subsequently continued higher back towards the original bearish point of release.
The bulls will want to see a break of resistance and a restest of the structure for the possibility of a continuation higher.
Failing that, a break of the dynamic support line could be the makings for the next bearish leg.
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