Here is an end of US session GBPJPY 4 hr charts.
We have had a bearish rejection of the top of the bull flag which is bearish bias .
Supporting the bearish bias is the fact that the upper trend line on the RSI has not been broken yet .
However the following items support a bullish bias
1) the trend line from the Euro session has barely been broken with little selling pressure
2) The volume on the up move was expanding indicating professional buying into the up move
3) The price is above both the 33 and 14 sma
So how do we trade this ?
There are 2 trade sets up
1) Go long above the open of the last 4 hour candle at 160.5 with upside targets of the 1-2-3 buy set up and fib expansions at 163,6
2) Go short on a breakdown of the 4 hour 14 and 33 sma at 158,50 , target bottom of flag at 153 area.
Have a great trading day .
Malcolm
