Daily Price Action
Shares

GBPJPY: 2016 Trend Line Still Holding as New Resistance

Shares

Important: I use New York close charts so that each 24-hour period closes at 5 pm EST.

Click here to get access to the same style charts I use on this website.

The GBPJPY is up for the fifth straight session. Buyers have extended today’s rally above a key level that I’ve had my eye on since February.

The trend line that extends from the 2016 low broke down on February 28 and has been serving as resistance since that time. I’ve featured the level on this site several times since then, but buyers continue to press on.

For those interested in selling the GBPJPY, the pair has been stubborn, to say the least. Then again, if you have a bearish longer-term outlook, you could also view recent strength as a blessing. After all, the aim is to sell high, right?

However, the key is having the patience necessary to secure a proper entry at higher levels. I had entered short with a small position last week just above 151.00, but I’ve since closed it at breakeven.

For now, I’m just keeping an eye on things. I am still interested in getting short as long as the GBPJPY trades below former trend line support on a daily closing basis. Keep in mind that I use New York close charts, which are vital if you intend to trade this way.

If GBPJPY bulls manage to close the day above the trend line (currently 151.05), it will negate the bearish bias in the short-term. You could say that the 2016 trend line shown below is the “must hold” level for sellers.

In summary, I have no position at the moment, but I am watching to see how the pair reacts to the 2016 trend line on the daily chart. A sell signal would take us back to the 147.90 area followed by 145.85.

Want to see how we’re trading this? Click Here to Join Justin and Save 70%

GBPJPY trend line on the daily chart

Leave a Comment:

14 comments
Don says

Your entry was too ealry for the head and shoulder

Reply
    Justin Bennett says

    I wasn’t trading a head and shoulders. I see no such pattern here.

    Reply
      Piklo Das Gupta says

      Please advice gbp/jpy pair, My sell order entry 150.2
      But big loss my account

      Reply
Sentry&Void says

I drew my trendline along the lows from March and bullish activity has been on for 5 days now. The bulls could be running out of breath at the 151.00 area

Reply
Long nguyen says

Tôi sẽ cố gắng. Và kiên nhẫn khi giá chạy tới điểm 153.30.thậm chí là 155.45. Trong trường hợp có thể

Reply
    Ade says

    Wich head and shoulders I don’t see pattern.

    Reply
wilfred says

Have you conceded USD/CHF and GBP/CHF the levels they are too…. Please I would like to know your thought about these two pairs

Reply
Lazlo says

Hi Justin, I am looking for a small push higher to the 61.8 fib there taking out the previous swing at 150. and faking traders into a bullish move.

Have a setup I drew a month back. Though it was invalidated at 150., but it seems like no, price is heading for that 61.8 FIB.

Reply
    layigold says

    I equally saw the possibility of the pair pushing to 61.8 Fibo level around 152.15 area. It is not a bad idea to look for sell price action around that zone . I would like Justin to comment on the new development as well.

    Reply
Eranda says

What will be euro/usd next two hours ?

Reply
Nelson says

with the price now 152.00, are you still think of going short?

Reply
layigold says

gbpjpy is now at 61.8 Fibo level and I could see a resistance at that level . I am on the look out for bearish price signal on 4H time frame though I trade daily chart. Any clear break above that resistance (61.8 Fibo would make me change my bearish bias on the pair

Reply
layigold says

I have stayed away completely from this pair because of the arbitrary and unpredictable move . My sell position was doing good but all of a sudden , the direction changed and hit my stop loss around 152.33 area. I understand why Justin chooses to be patient on this pair for now

Reply
    Long+nguyen says

    1 hành động khôn ngoan hơn có thể xẩy ra. Trong trường hợp giá chạm vùng 55.80 chúng sẽ để lộ dấu vết gì đó .
    Kiên nhẫn là điều cần cho những thiết lập!

    Reply
Add Your Reply