#GBPJPY @ 163.881 climbs despite forming a head-and-shoulders chart pattern in the 4-hour chart. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• GBP/JPY climbs despite forming a head-and-shoulders chart pattern in the 4-hour chart.
• The UK and Japan were on holiday on Monday, meaning volumes would increase during Tuesday’s session.
• If the GBP/JPY clears the 164.30 mark, that will invalidate the head-and-shoulders chart pattern, paving the path for further gains.

The pair currently trades last at 163.881.

The previous day high was 164.62 while the previous day low was 162.75. The daily 38.2% Fib levels comes at 163.46, expected to provide support. Similarly, the daily 61.8% fib level is at 163.91, expected to provide resistance.

The GBP/JPY snapped four days of consecutive losses and climbed above the 20, 50, and 100-day EMAs on Monday, gaining 0.28%, despite a risk-off impulse in the FX markets. As the Asian session begins, the GBP/JPY is trading at 163.84, above its opening price by 0.08%, at the time of writing.

The GBP/JPY daily chart, remains neutral-to-upward biased, though it should be noted that buyers regained control, clearing resistance levels at the 20, 50, and 100-day EMAs.Furthermore, the Relative Strength Index (RSI) bounced at around the 50-midline, renewing GBP buyers’ hopes for a re-test of the YTD high. A clear break of the 164.30 would pave the way for further gains.

The GBP/JPY 4-hour chart confirms the bearish bias in the near term. A head-and-shoulders chart pattern remains in place, which, measured by the distance of the head-to-the-neckline, would target a drop from current spot prices toward 161.50. Nevertheless, during the last couple of sessions, the GBP/JPY edged towards the neckline at around 164.30, which, once cleared, would negate the pattern, opening the door for higher prices. Otherwise, the GBP/JPY first support would be the daily pivot at 163.50. Break below will expose the S1 pivot at 163.12. A breach of the latter will expose the 200-EMA at 162.93, followed by the S2 daily pivot at 162.69, ahead of the 161.50 targets.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 163.84 at the time of writing. Pair opened at 163.24 and is trading with a change of 0.39 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 163.33, 50 SMA 163.27, 100 SMA @ 163.06 and 200 SMA @ 160.05.

The previous day high was 164.62 while the previous day low was 162.75. The daily 38.2% Fib levels comes at 163.46, expected to provide support. Similarly, the daily 61.8% fib level is at 163.91, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 162.45, 161.66, 160.57
• Pivot resistance is noted at 164.33, 165.42, 166.21

[/s2If]
Join Our Telegram Group