Daily Price Action
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GBPJPY: Time to Flip From Short to Long?

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Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.

Last Friday I wrote about the potential for a pullback from GBPJPY.

The pair had stalled at 135.40 resistance, which was our second target following the breakout I wrote about on September 8.

Friday’s session carved a bearish engulfing candle, which hinted at a move into 132.20 this week.

Notice how today’s low, at least so far, is 132.31.

The GBPJPY is also off that low by about 70 pips as of this writing.

So, are buyers gearing up for another run next week?

They could be, but I would prefer to see GBPJPY take out Thursday’s high at 133.29 first.

It’s a close call, but so far today has managed a high just below it at 133.27.

That two pip difference may not seem like much, and it isn’t, but it could become a factor as we head into Monday.

But all in all, today’s bounce from 132.20 support seems significant.

If buyers can get behind it, we could see another run at the 135.40 resistance area next week.

However, another leg up from 132.20 would more than likely target 137.80 over the coming days and weeks.

A view of the weekly time frame shows just how significant 137.80 has been since GBPJPY bounced during the first week of 2019.

That said, GBPJPY bulls need to get through 135.40 first.

They also need to clear Thursday’s high at 133.29.

Without that, we could see GBPJPY rotate lower to retest 132.20 next week.

A daily close below 132.20, either today or next week, would negate the idea and expose the next key support at 130.40.

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GBPJPY key support and resistance levels for next week

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16 comments
Justin Bennett says

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Praise says

thanks for the updates. have a happy weekend sir Justin.

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    Justin Bennett says

    You’re welcome.

    Reply
AD Tariq says

exactly ur analyse is excellent

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Sushant says

Thank you for your analysis Sir. However, the down move is expected to stall around 50% Fibonacci retracement level at 131.20. Ideally, market is expected to make a U-turn and continue uptrend somewhere from that 131 level.

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    Justin Bennett says

    Thanks for sharing. As I mentioned above, I’m not buying GBPJPY without seeing more from buyers.

    Reply
ali says

Sir justin what do you think about gbpcad for next week your thoughts will be appreciated. Thank you

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sifiso says

Hi there! I have been short the pound, since last week,, I’m well in good profits on those, however I am planning to take my profits before 5pm EST on Monday next week if my take profits are not hit..Ill be closing with the smart money for the quarter. then I will wait for the smart money to show their hand for the new quarter, so I can join them timeously ( THE TIMING ELEMENT THAT MOST RETAIL TRADERS DO NOT HAVE IN THEIR ARSENALS).

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Jay says

It looks like 132.2 is strong support.
Thanks for your analysis. I get profit from selling it.

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Jane says

Thank you Justin for your analysis which I trust 100% as I have seem it works. I shorted the pair from Monday with the target at 132.20 but I could see it running out of steam and am out at 132.40. It does look to me like bears are struggling to bring it down to my initial target. Thank you and have a great weekend.

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    Jane says

    * seen not seem. sorry for typing error

    Reply
CHIDI says

Thanks for your consistent analysis

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BEN says

Nice work Justin, great work you are doing here God bless your effort. hope to keep coming back for positive vibes.. Thanks

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John Paul says

Thanks for this information, Mr Justin.

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John Paul says

On the 24th of September, 2019 GBPJPY carved a PIN Bin that closed below 133.80 support. This gave me the confidence to enter short.

I am still short this pair because price has ripped through 132.20 Support.

I will be holding my trade towards the 130.40 Support. Thanks, Mr Justin.

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