GBPJPY is reversing the long-term downtrend
What is happening with GBPJPY? We are seeing the MONTHLY December breakout above the 139 resistance and a continuation higher for a test of a long-term falling trend line 158. Does this mean that the GBPJPY is heading higher in the case of sustained continuation above 139? Should you be building the buying position…If we look at the monthly chart we can see a huge reversal month November and December 2020 but we need to see a sustained continuation above 139 for an extension higher to 158.500.
The only thing that we can’t rule out is a violent price action around 141.600 resistance we are testing now and this is exactly the strong near-term resistance now for an extreme upside continuation. At the moment a sustained continuation above this resistance will be a clear indicator that the upside extension is valid and dominant. We can see that clearly on the weekly chart below. We could have a consolidation also.
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We have used the combination of the top-down trading analysis to get these key levels explained in the charts.
