FX.co ★ ckerluke | GBP/JPY

Analysis GBPJPY D1 using Supply and Demand and Stochastic Oscillator Sunday,18/10 On the GBPJPY D1 chart, the current price is around the 210.593–211.703 area. Previously, price experienced a fairly strong decline from the 217.5–218.5 area down to near 206.8. After that, price began to move up and formed a bounce from the lower demand area. In general, the trend still tends to be bearish because price has not managed to break the important resistance area. However, there is currently a short-term upside opportunity because price is recovering from the lower area. Supply and Demand Analysis Supply area (sell zone) 217.577–218.578: strong supply zone. This area is where price previously experienced rejection. If price rises to this zone, there is potential for selling pressure again, especially if a bearish confirmation appears. 210.593–211.703: the nearest resistance zone currently being tested. Price needs to break and hold above this zone to strengthen the upside opportunity. Demand area (buy zone) 206.821–207.679: the main demand zone on the chart. Price previously bounced from this area so it has the potential to be a place for buyers to re-enter. If price returns to that zone and shows rejection to the downside, a rebound opportunity may appear. However, if price breaks 206.821 strongly, bearish pressure could continue. Stochastic Oscillator Analysis Stochastic values are around 73.83 and 72.03. Both lines are moving up and are approaching the overbought area, which is above level 80. This means: Momentum for the short-term upside is still visible. Price has the potential to continue rising toward resistance. However, the risk of a correction increases if the Stochastic lines turn down or a bearish cross occurs, especially when price fails to break resistance.

Trading plan BUY Plan A: Buy if resistance is broken Entry: after the D1 candle closes above 211.703 and price manages to hold above that zone. Stop loss: below the breakout area or the nearest swing low. Take profit 1: around 213.000–214.300. Take profit 2: around 215.800. Additional condition: Stochastic remains trending up and price does not immediately re-enter the resistance zone. SELL Plan B: Sell if a resistance rejection occurs Entry: wait for price to fail to break 210.593–211.703 and for a bearish candle to appear as confirmation. Stop loss: above the swing high or the rejection zone. Take profit 1: around 208.200. Take profit 2: demand zone 207.679–206.821. Additional condition: Stochastic turns down or the blue line crosses below the red line. Conclusion GBPJPY is testing the resistance zone 210.593–211.703 after bouncing from demand 206.821–207.679. Stochastic shows upward momentum, but is already approaching the overbought area. The main scenario is to wait for the price reaction at the resistance zone. If a breakout is confirmed, a BUY opportunity opens. If a rejection occurs accompanied by a bearish Stochastic signal, a SELL opportunity toward the demand zone becomes more attractive. Do not enter just because price touched the zone. Wait for candle confirmation, use a stop loss, and limit risk to about 1% of capital per trade. This analysis is based on a chart image, not real-time price, so levels should be rechecked before trading.