GBP/JPY Daily Chart Testing Key 144 ema Plus H&S

The GBP/JPY is testing the 144 ema resistance (red box) after bouncing at the 50% Fibonacci support zone (green box). A bullish breakout could confirm a move higher.

Daily chart

The GBP/JPY might be building a wave 3 (light purple) but there needs to be a clear daily candle closing above the resistance zone and 144 ema close. A breakout could trigger a wave 3 (light purple) of wave A (purple) that will retest the previous top.

A failure for price to break the head and shoulders pattern resistance level could trigger a retest of the support (green) trend line. A bearish breakout below that support line could turn the table and indicate a bearish outlook towards the next Fibonacci levels.

Good trading,

Chris Svorcik

The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter

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This article was originally posted on FX Empire

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