GBP/JPY: Bulls are challenging the 140 level, will they break it ?

Overview By looking at the chart we can see that pair is heading north side and making successively higher highs and higher lows. The daily chart tells us the story of the bull’s victory. Well after making the low of 124.00 level we have seen sharp buying till 135.73 level and then we have seen a correction till 129.28 level which was the second opportunity to buy the pair and last week it made a high of 139.30 level and breached the 200 SMA line with a bullish candle.

It’s purely bulls run and the short term to the intermediate-term trend is up and in an uptrend market always buy on dips will be a profitable strategy. The bulls are leading in the game and dominating the bears at every nook and corner.

Technical Analysis- From a technical perspective we can see that pair is rising by taking the demand pressure from an uptrend line followed by an aggressive uptrend line. Some corrections can’t be ruled out but these corrections should be taken as buying opportunity. The overall pair is moving above all the major and minor EMA lines on daily as well as 4 hourly chart which is providing us a bullish signal. The way pair is trading and sustaining it seems like they are approaching the 145 level in near term. Odds are in favor of bulls and intraday bias remains bullish as long as 135 level remains intact on a closing basis.

A bullish crossover on MACD indicator is favoring the bulls and providing us a bullish signal for the time being and RSI is also providing a bullish signals from above 50 territories. The green dots of parabolic SAR at the downside of the candles are favoring the bulls.

What Next- The 142.00 level is immediate resistance level followed by 145.00 whereas 137.40 level is strong key support level followed by 135.00 level.

Trade idea:– Based on chart and study above we would suggest that one can go for buy above 140 level for the target of 142 and 145 with a tight stop loss of 138.50.

 

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