Wed. Jan 19th, 2022

GBPJPY Update and follow-up of the short-term forecast


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Hello traders! Updating and tracking GBPJPY’s short-term forecasts are already here. On August 18 I shared this “GBPJPY Short term forecast and technical analysis”Post to our blog. In this post, we summarize this configuration and see how it has developed now. For more information on our way of trading and the technical analysis we use, see the page Traders Academy Club. Spoiler alert: There are free subscriptions.

My idea

In the H4 chart, the rising price reached a strong resistance zone (marked in red), respected it and bounced lower from this zone. Then, the price dropped even further and fell below the last low, to 151,163, thus forming lower lows based on the MACD indicator, which we can consider as a bearish pressure test. In addition to this, the ADX indicator also gave a bearish signal here at the cross of -DI (red line) versus + DI (green line), and the main signal line (silver line) has a value greater than 25, we can consider this as further proof of bearish pressure. Also, we had a strong support area and the price going down has broken below that area and is staying below. We can consider this as further proof of bearish pressure. Currently, this strong support zone acts as a strong resistance zone for us. As long as this resistance zone (marked in green) maintains my short-term vision, it will remain bearish here and I hope the price goes down even further.
GBPJPY Update and follow-up of the short-term forecast

GBPJPY H4 (4 hours) Graph Current scenario

In this pair based on the analysis of various time periods, my opinion was bearish and I expected the price to go down even further until the strong resistance zone is maintained. The price action followed my analysis exactly as I expected here. The rising price reached the strong resistance zone, respected it and went down from that zone. Then the price went down even further, as expected, and delivered about 180 moves so far.
GBPJPY Update and follow-up of the short-term forecastThe market provided us with several facts that supported the bearish view of the M15 chart. The rising price created a bearish divergence between the first high formed at 151,265 and the second high formed at 151,397 based on the macd indicator. Then the price went down and fell below the most recent uptrend line. We can consider them as market-provided facts that support the bearish view. Then, as you can see in the image below, the price went down and it was an incredible downward measure.

(Note: here you can learn about Killer Forex’s “Double Trend Principle” strategy)
GBPJPY Update and follow-up of the short-term forecastCurrently, in the H4 chart, we have a potential bullish divergence that is forming at the moment, which we need to pay attention to. Therefore, if you are still involved in sales, this is a good place to consider managing your business and insuring your profits (partial collection or partial collection or subsequent protections or partial coverage, etc., depending on the strategy with which work).

Note: For more information on money management, you can find it here

As traders, we always have two options: the first is to fall in love with our analysis and try to convince the market and wait for the price to move in the direction we want. The second is to follow the facts provided by the market and take the appropriate actions accordingly. As you know, the first option will not help us and, as you can see in the example above, what happened when we followed the facts that the market gave us to understand and took the appropriate steps accordingly.

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Yordan Kuzmanov
Chief Trader of the Traders Academy Club

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