GBP/JPY: Bulls are advancing due to breakout of downtrend line

July 10 , 2018

 

Earlier we have seen that bears were dominating the bulls at every nook and corner and it seems like blood bath is going. The pair was trading below all the major and minor EMA lines and bears were getting downside pressure from a downtrend line. Presently the picture has been changed as the downtrend line has breached out and pair is trading and sustaining above that line and all major and minor EMA lines.

 

Yesterday also we can see that it was a too volatile session as Sterling is struggling to develop momentum against the softening Yen as Brexit headlines shake out bulls.5 UK ministers have resigned from their positions within the Brexit cabinet in protest of PM May’s latest proposal. From technical prospective we can see a ascending uptrend line has been formed on the 4 hourly chart. The way bulls are reacting it seems like they are approaching at least 150 level in near term.

 

 

 

 

Well Odds are in favor of bulls and intraday bias remains bullish on pair as long as 145.00 levels remain intact. A bullish crossover on MACD indicator is favoring the bulls and providing trend reversal signal for the time being and RSI is also providing bullish signal from above 50 territory. The short term to intermediate term trend is still down and presently we are receiving trend reversal signal.  The 145.00 level is immediate resistance level followed by 143.00 whereas 147.50 level is strong key support level followed by 149.00 level.

 

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