GBPJPY - Chart Analysis 9th July 2017

Breaking down the charts and blogging them is becoming a large feat!

Instead of breaking down every single chart and me losing motivation to be consistant and risk this blog dying, I'm going to begin posting charts that are actually on my watchlist for the week and looking to trade.

To kick off this feature, GBPJPY is one with my eyes this week...

Weekly formed it's technical higher low after the large sell off and price has began trending up, forming this ascending triangle formation.

Price is now within the upper third of the pattern, closing above the EMA's and a potential crossover.

Price is reacting to the Weekly Resistance zone which can be shown respecting this as resistance over the last few months unable to break this level.

Price on the Daily we can see a strong bull-run but hit this resistance level, showing decelleration around this level and Friday's candle close being a high-test/hammer candle which is a sign of reversal.

Looking at the RSI it's within the oversold region and MACD is showing divergence which is a signal for the downside.

We could of course see a breakout and test of this level, but confluence is stacking up for a reversal before we see another retest of this level.

Marking up the FIB, a retrace to the 50/60% Fib zone ties up with the EMA's where we would like to see price move back towards value.

For a swing trade to the downside, I'll be placing an order below previous daily candles low and aiming for Profit around the 50EMA which aligns with 50% Fib level.

Stops would be based on a breakout of this level and above prior candles.

This would be a good 3:1 Risk/Reward trade.

For a shorter term trade, on the Hourly we can see a similar ascending triangle pattern has formed, together with a Head & Shoulder pattern on the failed breakout of the 147.00 resistance level.

I'd look for a break and retest of the trendline for price to fallback to the 200EMA for a shorter term trade.