GBPJPY - All timeframes point lower. Looking to sell rallies

[PIA_First_IC]

Having another look at GBPJPY this week as all time-frames are highlighting a downward bias on selling into rallies.

 

Monthly: After the monthly Ichimoku Cloud had capped buying, follow through selling is likely to form an AMR (Acute Monthly Reversal Candle). In this scenario a Bearish Outside Candle

 

Weekly: Holding within a bearish Ending Wedge pattern. On a break of trend line support at 144.90 the target (start of the edge) is 135.60. The Marabuzo from week 5th February (midpoint from open and close) is seen at 152.86

 

Intraday (four-hours) – Mixed trading for the last 9 days has resulted in the cross forming a corrective channel formation. Upside barriers are:

1. 2% Fibonacci pullback level at 151.33 (from 156.61-147.96)
2. Bespoke resistance at 151.35
3. Trend line resistance is seen at 151.75
4. Aforementioned Marabuzo level at 152.86

 

Selling at 151.30 with a stop at 153.30 and a target of 135.60 (wedge target) offers a reward to risk ratio of 7.85/1 (we would recommend moving the stop to entry on a move through 144.90)

 

In regards to the PIA analysis, no representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result.

 

[PIA_First_IC]

We failed to trigger our short. We now look to cancel the SELL trade idea

 

GBPJPY weekly wedge support