Daily Price Action
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GBPJPY Approaches New Resistance at 144.00

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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 charts I use.

The GBPJPY is fast approaching an area that could pose an issue for buyers. In fact, it’s already more than halfway there following the recent bounce from the 140.00 handle.

Although the 144.00 support area did give way during the late May and June tests, it only did so on an intraday basis. The pair held above the level on a daily closing basis (New York 5 pm EST) during that period.

I discussed this level as the GBPJPY was breaking below the thirteen-month ascending channel earlier this year. It’s a well-defined pattern that stretches back to the 2017 low at 135.60.

I also pointed out the 144.00 area in the July 16th commentary. At the time, the pair was testing 149.00 as new resistance. Sellers went on to carve a bearish pin bar during that same session.

With the risk-sensitive GBPJPY rebounding from 140.00 support, we’re once again focused on the 144.00 region. Only this time we’re interested in how well sellers defend the area.

Note that 144.00 is also the 23.6% Fibonacci retracement of the current 2018 range. It stretches from the February high at 156.60 to the August low at 139.90.

To be clear, I won’t merely sell from 144.00 without confirming price action. A pair like GBPJPY is too volatile to attempt such an entry.

Instead, I will wait for bearish price action to form such as a pin bar or engulfing pattern. If either materializes, it could present a favorable opportunity to get short for a move back to 140.00.

On the other hand, if the pair were to close back above 144.00, it would delay the bearish outlook.

There’s no doubt that a short-term downtrend has taken over following the May 23rd breakdown. Before that time, the market had been carving higher highs and higher lows between April 2017 and May of this year.

However, it’s important to stay vigilant despite the recent shift in momentum. Patience and discipline are your best defense, and waiting for a 144.00 retest followed by bearish price action are excellent first steps in my opinion.

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GBPJPY daily time frame showing new resistance

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24 comments
Adewale says

Thanks a million

Reply
    Justin Bennett says

    You’re welcome.

    You all should also notice a nice improvement in the speed of the website. Pages should be loading much faster now. Like this comment if you notice the difference. 🙂

    Reply
Briant says

Thanks Bennett… Appreciate the focus away from the reversal patterns on the Euro and GBP

Reply
    Justin Bennett says

    My pleasure, Briant. Cheers.

    Reply
Eddyson says

Hi Justin, is the GBPJPY charts on hourly, every four hours,or daily ?

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    Justin Bennett says

    Daily time frame. It’s displayed in the top left corner of the chart.

    Reply
Felix Great says

Thank you Justin. God bless you.

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Emuobo says

Well noted.

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Andrew Lugemwa says

Justin i asked about setting those two moving averages on your charts. What are the parameters for those moving averages? Kindly reply

Reply
    Justin Bennett says

    Someone answered for me a couple days ago. I use the 10 and 20 EMAs.

    Reply
Emuobo says

What are your thoughts on the EurCad? The pin bar forming on the daily?

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    Justin Bennett says

    It is a pin bar of sorts, but the pair is now above a key area.

    Reply
Grace says

Justin a big thank for the insight

Reply
    Justin Bennett says

    A big you’re welcome. 🙂

    Reply
Oludare says

Justin you are a great forex couch I can vouch for any day any time I will soon join the member area

Reply
    Justin Bennett says

    Thanks for the kind words. We look forward to having you as a member.

    Reply
Leo says

Hey Justin, I’m new in forex trading. But after watching your free ultimate forex swing webinar, I traded this pair. Went in long at 141.038 and went in for 500 pips.
Right now I’ve got about 170 pips and moved my stop loss to lock in the first 100.
Seeing your write up here about a resistance at 144, I’m now watching the trade closely. I must have missed that resistance there.
But let’s see how it goes.
I may be in for the entire 500 pips (smiles).
Your lectures are amazing.
Thanks for the free gifts as well.

Reply
    Justin Bennett says

    Congrats on the trade.

    You’re very welcome for the content. Glad to know it’s paying off.

    Reply
    chua anan says

    Hi Leo, morning (our local time 11.43 am) admire you learned something from the web. I am new anyway and just to say helleo

    Reply
Sandile says

Can I ask what your Moving Average settings are?

Reply
    Justin Bennett says

    10 and 20 EMAs.

    Reply
Rose says

thank you for your words, it is very useful .

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Francisca Romany says

I would like to find out more about the lifetime membership? Is it a one time fee or is there a monthly fee to pay also?

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