GBP/JPY - 4HR Structure
We can see here that price is trading in a flat channel, with 2 bounces off our 4hr resistance and support levels.
Zoom out to the daily chart and we can see this pair is in a long term uptrend, and nearer the bottom of our 'bigger picture' ascending channel.
Therefore, we can anticipate that price will break out of this structure to the upside. However, we might see price continue to trade inside this flat channel for the rest of the week.
Aside from identifying simple structure, I'm trying to highlight the importance of looking at higher time frames to identify overall market direction before looking to trade the lower time frames.
We can see here that price is trading in a flat channel, with 2 bounces off our 4hr resistance and support levels.
Zoom out to the daily chart and we can see this pair is in a long term uptrend, and nearer the bottom of our 'bigger picture' ascending channel.
Therefore, we can anticipate that price will break out of this structure to the upside. However, we might see price continue to trade inside this flat channel for the rest of the week.
Aside from identifying simple structure, I'm trying to highlight the importance of looking at higher time frames to identify overall market direction before looking to trade the lower time frames.
