GBP/JPY Price Forecast – Inverse Head & Shoulders Setup

GBP/JPY is showing the formation of an Inverse Head & Shoulders pattern, which could signal a reversal to the upside. Traders should wait for a confirmed break of the trendline with a strong bullish candle to enter long positions.

📊 Technical Breakdown
📍 Pattern: Inverse Head & Shoulders (Bullish Reversal)
📍 Trendline Resistance: Watch for a clean break of the trendline connecting the right shoulder and head.
📍 EMA 200: If price breaks above the EMA 200, this will add more confirmation for the bullish move.

🔎 Key Confirmation Signals:
✅ Break Above Trendline Resistance – A strong bullish candle closing above the trendline confirms the pattern.
✅ EMA 200 Cross: Price breaking above the 200 EMA would indicate a shift to a bullish market structure.
✅ Momentum Indicators: Look for RSI crossing above 50 and MACD bullish cross for added confirmation.

📉 Technical Target Levels:
📈 194.500 – Initial upside target
📈 198.500 – Psychological resistance level

⚠️Risk Management & Trading Plan
🔸 Entry: After the trendline break and confirmation of a bullish candle
🔸 Stop Loss: Below the head or right shoulder to manage risk
🔸 Take Profit: Scaling out at target levels with optimal risk-to-reward
🔸 Invalidation: If price fails to break the trendline or falls back below it, the setup could be invalidated.

📢 Final Thoughts
This is a high-potential reversal setup, but always wait for confirmation before entering the market. Keep an eye on potential news events that might affect GBP/JPY.

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