GBP/JPY is currently moving higher. Long opportunities can be placed on condition that the price is corrected and tests the demand zone at 167.53.

Hi fellow traders! GBP/JPY appears to have recorded a gain on Monday (12/December). This pair continues to rally and signal a long opportunity around the demand zone at 167.53.

gbpjpy

 

Analysis and Recommendation

Let's take a look at the following GBP/JPY H1 chart below: 

gbpjpy

Based on the H1 chart above, it has been pointed out that GBP/JPY is continuing its rally. Since the bullish sentiment is currently controlling, it makes the buy scenario still dominant. That way, watch for the demand zone 167.53 – 167.00 which can be used as a reference for an open position when the price is corrected to that zone.

On the other hand, a short position can also be placed as long as the price drops past the psychological level of 167.00. GBP/JPY is expected to continue wearing out towards the lower demand zone after breaking through that level.

  • Therefore, set a long position at 167.53 when the price manages to enter the demand zone and there is a bullish signal confirming it.  Stop loss may be positioned at 167.00, while the profit target is at 169.43. 
  • Alternatively, set a short position at 167.00 when there is a significant breakout signal confirming it. Stop loss may be positioned at 167.53, while the profit target on 166.25.

Keep in mind to always use risk and money management before trading! In addition, to make use of trailing stops, don't forget to exit the market as soon as you find a reversal signal!

GBP/JPY key levels: 

  • Resistance: 170.19, 169.43
  • Support: 167.53, 167.00 (psychological level), 166.25, 165.65