By Admiral Markets
The GBP/JPY formed a rounding bottom pattern that is almost close to its completion. Bulls have been dominating on 4h time frame and the price is very close to M H5 resistance. Monthly H5 indicates a strong resistance and the price could reject it. However also pay attention to 154.05 as it indicates historical swing were sellers were dominating. Therefore, the zone is 154.05-68. It is a wide zone due to huge ATR of GBP/JPY. The zone should reject the pair initially towards 152.15 where we could see a retest of M H4/ W H4. If the price continues above the zone, the bulls wont probably stop until 156.50 has been reached in weeks to come.
W L3 – Weekly Camarilla Pivot (Weekly Interim Support)
W H3 – Weekly Camarilla Pivot (Weekly Interim Resistance)
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W H4 – Weekly Camarilla Pivot (Strong Weekly Resistance)
M H4 – Monthly Camarilla Pivot (Very Strong Monthly Resistance)
M L3 – Monthly Camarilla Pivot (Monthly Support)
M L4 – Monthly H4 Camarilla (Very Strong Monthly Support)
POC – Point Of Confluence (The zone where we expect price to react aka entry zone)
Article by Admiral Markets
Admiral Markets is a leading online provider, offering trading with Forex and CFDs on stocks, indices, precious metals and energy.