GBP/JPY has been bullish in the daily chart. The chart produced double bottom and made a breakout at the neckline. After continuing its journey towards the North, the chart produced two bearish candles. The last candle came out as a Hammer with a tiny bearish body. The long lower shadow may attract the intraday traders to push the price towards the North today. Let us now have a look at three key charts.
Chart 1 GBP/JPY Daily Chart
The chart shows that the price after being bearish had a bounce around 131.800 twice. At the second bounce, the chart produced a morning star. Since then, it has been heading towards the North. However, the price had a rejection at 136.060 on Thursday and produced a bearish pin bar. The next candle came out as a hammer having a bounce at 134.290. If the chart produces a bullish reversal candle closing above 136.060, the buyers may push the price towards the North and create more bullish pressure. The price may find its next resistance around 139.500.
Chart 2 GBP/JPY H4 Chart
The chart shows that the price had a rejection at 136.100 and headed towards the South. The level of 134.200 has been working as a level of support. The level has produced a bullish engulfing candle and has been pushing the price towards the North. The price may find its next resistance around 136.100. A breakout at that level may push the price towards the North with more bullish pressure.
Chart 3 GBP/JPY H1 Chart
The chart shows that the price had a rejection of around 136.000 and headed towards the South. The price consolidated around the level of 134.400 and made a bullish move. It has been ranging within two levels. A bullish breakout may push the price towards the North. The price may find its next resistance around 136.000. On the other hand, if the price comes down, it may find its support around 134.400. A bearish breakout at 134.400 may drive the price towards the South further. However, it may not make a long bearish move in case of a bearish breakout.
A double bottom in the daily chart and the breakout at the neckline may attract the buyers to go long in the pair. This may create good bullish momentum. The H4 and the H1 chart look good for the bull as well. Thus, the pair may end up producing a bullish candle in the daily chart today.