GBPJPY FOREX PAIR 1H TIME FRAME DATE 7/22/2024
On July 11th, we observed a swing point in GBP/JPY influenced by the CPI economic data release. The positive data for the Yen caused weakness in the Pound against the Yen. Despite this, the current order flow continues to exhibit a bullish trend.
Over the past two weeks, we have been navigating through an absorption phase of the WXY correction for leg 4. On July 17th, we entered an accumulation phase indicating a gradual reversal, supported by resistance levels in the current order flow.
Based on my analysis, it appears that the correction has concluded, with the recent 1-hour low potentially marking a significant swing point for the upcoming leg 5. This setup suggests a scenario with substantial upside potential for this week, aiming to surpass last week's high.
Key economic events such as the PMI release scheduled for Wednesday further reinforce this technical confluence. Additionally, current sentiment and Commitment of Traders (COT) data indicate a favorable outlook for buying GBP/JPY.
Nevertheless, it's crucial to always manage risk prudently. While we maintain a long-term perspective, the current conditions present a promising opportunity for the quarter.
Over the past two weeks, we have been navigating through an absorption phase of the WXY correction for leg 4. On July 17th, we entered an accumulation phase indicating a gradual reversal, supported by resistance levels in the current order flow.
Based on my analysis, it appears that the correction has concluded, with the recent 1-hour low potentially marking a significant swing point for the upcoming leg 5. This setup suggests a scenario with substantial upside potential for this week, aiming to surpass last week's high.
Key economic events such as the PMI release scheduled for Wednesday further reinforce this technical confluence. Additionally, current sentiment and Commitment of Traders (COT) data indicate a favorable outlook for buying GBP/JPY.
Nevertheless, it's crucial to always manage risk prudently. While we maintain a long-term perspective, the current conditions present a promising opportunity for the quarter.
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