GBPJPY Longterm Analysis

Hello traders, today we are analysing GBPJPY on a larger timeframe due to the relentless JPY currency having a lot of weakness impacting all JPY currencies.

This weakness has given me a clear indication of GBPJPY moving in a bullish direction, but the real question is when will this price hit resistance and reverse?

Well......We have identified major zones of interest which are very interesting as they are in structure levels and fib levels, and these are key zones of interest for me due to the confluences behind these.

I can also see a parallel channel which has been respected forming an ABC pattern which has been broken so before price begins to rise to 160 level + we will see a retest of this structure level before we continue upwards!

We will wait for more price action to occur to give us a clearer indication of the direction, however on a smaller timeframe we can see a lot of weak candles indicating a reversal. We will be waiting for a clear indication and a break of structure level to confirm the downward momentum.

Economic Data:

• Japan planning ¥100 billion tech fund for economic security
  
• Tokyo reports 40 new COVID-19 cases, the lowest this year
  

Thanks for taking a look, please share your thoughts below!