GBPJPY has been rising for the entire week, and now facing key resistance level of 184.50.
184.50 was rejected once on Sep 25th. Also the current price is in the reversal pivot zone (WM4 – WR2), and Fib50%-61.8% zone. And… today is Friday.
So tons of reasons to expect the price may fall from here.
However, there is another way to look at.
The price already broke 55EMA, and furthermore, 21EMA > 55EMA. So we can argue this pair is already in the up-trend.
Here is how to gauge that.
Let’s see if the price breaks the resistance of 184.50. If it does, then try to buy after the pullback.
If it is rejected, then we can short from the next Lower High.
I would feel that everyone is getting ready to further QE from Bank of Japan, so that people started to sell YEN again.
Hope this analysis helps you build your own.
YJ Baik – Forex.Today @ Tokyo