GBP/JPY GANN & Price Action Analysis

GBP/JPY – During the last week both GBP and JPY remained under pressure, show high volatility and lost strength versus other currencies.

The pair, on a daily and weekly Time Frame, is warming up for a long bullish rally. This has confirmed by different analysis to provide strong biase of long trend on GBP/JPY Intraday Trading.

Channel study reveals bearish channel has been over and a new bullish channel established. Price in the bullish channel is preparing to have its impulse move after retracement within the main channel.

Weekly channel study also supports the daily channel, making strong biased,a  Start of a bullish impulsive movement within the channel.

Symmetrical triangles have formed a breakout upward. Triangle apex have bullish skewness show a sign of bullish trend in control.

On weekly chart, continuation pattern flag is emerged and about to break, providing strong prognosis for GBP/JPY to create a bullish move over the next few weeks.

It has already developed north ward Skewed double bottom. In other words, new higher low confirmed as a sign that buyers are taking control over the sellers and that sellers are gradually loosing control.

Harmonic study on small amplitude shows that bullish Graveyard Pattern (5-0) formed a clear sign of a bearish failure. Elliot wave 3 on smaller time frame confirms the start of a bullish ride – PRZ (Point Reversal Zone has been validated).

Harmonic study on larger amplitude show establishment of AB=CD pattern, PRZ validated. Price starts its journey toward north retesting phase and after that will have smooth northward long drive.

Volume spread Study clearly shows gradually smart money getting to be validate as accumulation breakout retesting phase which is a clear sign that buyers are going to be in control over the next few weeks.

GANN Study also confirms what price action shows:

Price remains in zone of GANN 45 degree bullish zone showing bullish power in equilibrium. From Last few days, price consolidated in range but still in a buy zone and does not not enter into sell zone – Making the pair main trend direction bullish.

Price as per GANN Square of 144 is in buy zone. From swing price we can see a  clear upward move till 45 Degree of time span. This signals a clear break out and than start correction move which is under GANN 45 Degree zone. Moreover, price is in GANN square of Nine is in Buy zone. It is expected to break up the 45 degree level  that will have smooth ride toward 180 Degree equilibrium point. Time needed to attain this would be one complete cycle of 90 Degrees.

GANN square of nine Study along GANN natural level study revealed that GBP/JPY established a validated swing to have a clear bullish movement till GANN 180 degree level. Than, the pair wil have 45 degree retracement which is hoped to be mature now. Than it is expected to continue an upward move in th next coming days.

GANN Natural Levels to monitor:

180, 225, 270, 315, 360, 405, 450, 495, 540 (2 x 270)

Elliot wave study reveals GBP/JPY on daily chart starts bullish impulsive wave. Currently, at stage of wave 2 maturity. Wave 2 was ranging so wave 4 hoped to be sharp and GBPJPY is looking for the next level of 195.683.

This analysis is suitable for intraday traders and GBP/JPY have strong prognosis to maintain bullish impulsive move in the next 6 to 8 weeks and ultimate target it by trying to find 195.683.