GBP/JPY Chartpack - Technicals & Trade Setup : FxWirePro | April 18, 2018

GBP/JPY bulls beam up with momentum despite shooting star and stiff resistance, major trend retraces 38.2% Fibos – Trade boundary binaries:

Chart and candlestick patterns occurred: Hammer and bullish engulfing patterns in the minor trend evidence considerable rallies through uptrend line (refer daily chart ).

While the intermediate trend has been spiking through rising wedge pattern which is bullish in nature, for now, the bulls have tested the strong support at wedge baseline and retraced more than 38.2% Fibonacci levels. Consequently, the rallies are likely to extend only on the decisive break-out above stiff resistance at 153.803 levels (refer monthly chart).

Hammer occurred at 145.831 levels and bullish engulfing pattern has occurred at 147.065, 149.939, 149.819 and 152.633 levels that take off rallies well above DMAs but restrained below the stiff resistance at 153.803 levels, countering bearish swings yesterday rallies have tested support at 152.6811 (i.e. 7DMA levels), consequently, the upswings attempt to break-out stiff resistance at 153.803 levels yet again.

The consolidation phase has been edgy in the stiff resistance areas of 152.121 - 153. 600 and attempting to dip below 7EMAs in the recent history, bearish patterns like hanging man and bearish engulfing patterns have occurred on monthly plotting at same levels.

The stochastic oscillator on daily and monthly terms have been converging upwards but has been slightly indecisive on monthly terms, bullish though in daily terms.

While RSI on the daily chart has been converging to the price rallies to signal the strength in the buying interests, same has been the case on monthly terms.

While MACD on both timeframes substantiates bullish interests, signals extension of price rallies.

Trade tips:

On speculative grounds, at spot reference: 153.607 we advocate buying boundary binary options choosing upper strikes at 154.144 levels and lower strikes at 152.6811.

Currency Strength Index: FxWirePro's hourly GBP spot index is flashing 133 (which is bullish ), while hourly JPY spot index was at -57 ( bearish ) ahead of UK CPI 0.18% data announcement, while articulating (at 06:17 GMT             ).