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GBPJPY Could Overshoot New Resistance at 149.40

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Over the weekend I discussed how I was looking for a retest of 149.40 on the GBPJPY. Friday’s intraday move above 147.90 seemed to indicate that the pair had more steam to blow off before the next leg lower could commence.

As I write this, the GBPJPY is trading at 149.20. The fact that the pair reached former trend line support as new resistance quicker than anticipated means that our key resistance area is closer to 149.20/30 rather than 149.40.

However, instead of searching for a short entry today, I’m going to hold off until Wednesday’s session. Something tells me that we could see the pair overshoot this new trend line resistance by a considerable margin.

In fact, I wouldn’t be surprised to see the GBPJPY spike to 150.75 before any credible selling pressure emerges. This is the 50% retracement from the February 2 high to the March 2 low and a level that served as a pivot throughout March.

Despite recent strength, I will remain bearish the GBPJPY as long as the pair remains below 149.40 on a daily closing basis (New York 5 pm EST). Key support comes in at 147.90 followed by 145.85 and 144.00.

In summary, I need to see former trend line support hold as new resistance. If it holds today and we get an intraday surge to 150.75 tomorrow, I will consider a small short entry from that level. But a daily close back below 149.40 will be required to hold the position.

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GBPJPY trend lines on the daily chart

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15 comments
Mimi says

Thanks for the follow-up Justin!

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FUNSO says

Good job ,Justin

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Mohammed Zailai says

Print mistake on chart..instead of 140.20/30 it reads 150.20/30 as resitance

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    Justin Bennett says

    Cheers. Thanks for catching that. It’s actually 149.20/30.

    Reply
Admas Engdashet says

It is good I see the laset gool this condition

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Nandarani says

Agree, that is where on my chart the 50% retracement of the move from the high February 2 on the daily chart down to the low March 2nd is: it’s exactly 150.795. The 61.8 level is at 152.168.

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Olivia phiri says

Wow this is good

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omer says

Thank you you are a champion

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Nandarani says

Justin and everyone else… I can’t bear to be thought at all good at this – I use a good pivot point indicator and now a good auto-fib indicator I’d attach if I could, from the Code Base website for mt4 and mt5 which shows the zig zag lines on any time frame and gives the fibs for it. I like your work very much because it isn’t fundamentally based but technically based.

Everyone be very thankful if you live in a time zone at all conducive to trading London/NY. I constantly miss the best because I am not able to be in front of the screen without so distorting my life that everything is thrown into chaos. For that reason, and one more important one, not related to another person but to find a real pre-Vatican II Catholic church. Scarce now; will leave it at that. Forex and praying constitute my life in addition to exercise, gardening, reading. I will be happier, though still carrying my cross of course, when I reach ‘Mecca’ – the mainland USA.

Justin: I would like to sign up eventually but I am always frustrated that it takes watching and reading before I get the bottom line: how much are you charging? I’m sorry… but my schedule really is so tight that I get frustrated and stop at that point.

Maybe I am missing a way to find the cost that everyone sees. Anyway. best wishes and I check your work regularly.

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    Nandarani says

    Nandarani here. Justin, just saw your little note. I don’t use a phone with apps and perhaps when on the mainland God willing later this year, will use other aspects of your work? Maybe there is a forum; I seem to remember there might be. Is there a forum where you post updates or must we use a phone. Still need the cost; you are cagey as I would probably be in your position. It is not a criticism.

    Reply
Sagitario says

I made some very nice pips with my own counter trend system 🙂 GL to all…

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Kenneth says

I agree with the comment made.
The price of the course and registration should come up before the video

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Aregbesola says

Thanks Justin, you are a good coach.

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Nonso Ezeodili says

thanks boss

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Milan basnet says

Good information .

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