GBPJPY – Week 8 – Ready for correction?

GBPJPY continued the uptrend that started in March 2020. It passed through the weekly resistance area at 147,93 that marked the top of the structure in December 2019. The price structure tells us that it will go higher but we advise caution because it’s an overextended move that needs to correct at some point before heading up again. Important structures to watch are the grey trendline and the blue one marked on the chart, with the blue being a more suitable candidate for a retracement. When the price gets in that important area we have to decide if we are going more down or heading to new highs.

Trade with care.

Best regards,
Financial Flagship

Disclaimer: The analysis provided is purely informative and it should not be used as financial advice. Remember that you need a plan before you start trading; so, take this knowledge and use it as a guidebook that will ultimately help you understand the market and easily predict your next move.