GBP/JPY Technical Analysis 1H Chart
After breaking a major trendline, GBP/JPY came to retest it and it's been forming an ascending channel, although it hasn't been able to break Resistance Zone 1.
-If price breaks the ascending channel to the downside, wait for a retest and look for a short entry with possible targets at Support Zone 1 and then Support Zone 2;
-If it keeps respecting the ascending channel and ends up breaking Resistance Zone 1, wait for a retest of that zone and look for a possible long entry with a close target around Resistance Zone 2. Bear in mind that Resistance Zone 2 is a really strong resistance that hasn't been passed since February 2020 and so price is most likely to reverse around that area.
-If price breaks the ascending channel to the downside, wait for a retest and look for a short entry with possible targets at Support Zone 1 and then Support Zone 2;
-If it keeps respecting the ascending channel and ends up breaking Resistance Zone 1, wait for a retest of that zone and look for a possible long entry with a close target around Resistance Zone 2. Bear in mind that Resistance Zone 2 is a really strong resistance that hasn't been passed since February 2020 and so price is most likely to reverse around that area.
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