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  • GBP/JPY is testing a critical area of resistance across the time-frames.
  • A break of resistance opens prospects to test deeper supply. 

GBP/JPY has run-up in a strong impulse to test the resistance of the daily M-formation and the following is a top-down analysis that arrives at a bullish bias across the time frames. 

Monthly chart

The monthly chart shows that the price is testing the resistance and would be expected to continue deeper into the supply zone following the correction of the bullish recovery.

Weekly chart

Bulls have moved off the support in a strong rejection which could see the resistance give. However, if there is a correction, another test of the 38.2% Fibonacci would be in order. 

Daily chart

The price has run to the resistance of the M-formation’s neckline in a strong rejection from the lows. The resistance would be expected to give way to such momentum.

4-hour chart

The 4-hourly chart is bullish with the price above the 20 moving average and MACD above zero. 

The market is also trading above resistance which is now expected to act as support on a retest,