GBPJPY - 24/04/20

GBPJPY - Technical view and TeamFX Review.

Daily Time Frame:

4 Hour Time Frame:

1 Hour Time Frame:

My Review:

Taking a very similar approach to that of GBPUSD just analysed we can see a near identical move. This pair on the higher Daily timeframe saw massive sell off during March establishing lows at the 124.00 level. Subsequently, we then saw price retrace to the upside in what can be described as a relief rally. As such we then saw price action stabilise off the key area identified at the 135.00-50 level or at the 78.6 point on the Fibonacci retracement. Daily candle closures at this time pinpointed numerous closures at or around this level illustrating further of the bullish or uptrend exhaustion on the retracement. Fundamentally, now we are looking for the continuation to the downside following the break of the weekly support at the 133.686 level. Like with GBPUSD we saw the initial selling momentum witness in the Asia session last night and moves resumed through both the London & NY Trading sessions with price now sat just above the 132.00 level. Furthermore, in align with the overall pound momentum, I would now be looking for price to stabilise at or around the 132.00 for the rest of the trading before we see the next way of momentum to the downside. This is illustrated on both the 4hr and 1hr timeframes as we see the consolidation occurring. Like with GBPUSD, for those who are not currently in this trade I would recommend to be looking at sell's on the Lower High pullbacks only with the downside targets over the medium term set at the initial lows at 124.00 and potentially at the -0.276 Fibonacci extension at the 120.00 level where we see further sustained weakness in the Great British Pound. In line with moves lower I will also be looking for increased strength and monetary flows into the safe havens formally known as the Dollar, Yen & CHF currencies as markets turn risk off following the initial moves lower in the stock markets and also the record lows being currently set in Oil.