GBPJPY:- Pump And Dump
GBPJPY:- The high volatility of the pair has made it difficult to suggest medium-term targets as price points have been hit within a matter of days after writing.
Last weeks candle moved 670 pips at the low of the spike and ended up engulfing the prior 7 - 8 weeks worth of price action. What we will often see after such volatility is a period of consolidation or sideways movement as the currency pair looks to stabilise shortly before continuing its overall direction.
With such a dump in price, it's hard to ignore the fact that we have potentially flipped our directional bias on the pair. The bearish sentiment may well have come due to the ongoing talks on the Brexit negotiations and hard talks that are currently occurring. From a technical perspective, we could expect to see 147.500 if we can maintain a break below the 150.000 key level. This monthly region will hold the key whether we break and start a reversal or rebound and continue our overall direction of steep valley pulls back and higher high peeks.
Previous:- Once again we saw target regions achieved from our previous analysis with price reaching 155.000 and beyond, making a higher 100 pips beyond at 156.100. Since then we saw a dramatic fall from grace as the price plummeted over the course of 2 days 266 pips to the downside breaking back below the monthly key zone. Having pulled back to a supportive zone of 153.500 this area will be crucial in determining the next leg of the journey. If this region can be sustained and rejected we could see a continuation back to revisit the highs around 156.000.
Highlighted on the screen is a long-term ascending trendline that could help determine where we might head to next. If we saw continued downside momentum on the pair 152.500 would be the immediate target in alignment with a 3rd touch of the ascending trendline. Looking at past history, price action has been suggesting on higher time frames since 2017,
that the pair has been making high peaks and deep valley retracement. For the time being, the price could be following a similar pattern as the recent retracement may be to confirm a new Higher Low in the market as I will be monitoring for a potential reversal from the support levels.