#GBP/JPY (4H) Chart Analysis
- Chris Trader
- Jun 2
- 3 min read
GBP/JPY (4H) Chart Analysis
From the chart, the overall structure remains bullish, with price recently breaking higher from a pullback and trading above key trend-support levels.
1. Market Structure
Bullish Trend Intact
Price is making higher highs and higher lows.
The green ascending trendline continues to support the market.
A BOS (Break of Structure) is visible after the recent pullback, confirming buyers regained control.
The sharp rally from the demand zone suggests strong institutional participation.
Bias: Bullish
2. Demand Zone
The blue highlighted area around:
213.35 – 213.80
is the most important zone on the chart.
Why it matters:
Previous Point of Interest (POI).
Origin of the current impulse move.
Confluence with:
Rising trendline
Dynamic moving average support
Previous BOS area
As long as price remains above this demand zone, buyers maintain the advantage.
3. QuantFlow Entry Rules Assessment
Rule 1: Outside Bar
The bullish expansion candles leaving the demand zone effectively created an engulfing/outside-bar style momentum signal.
Status: ✔ Confirmed
Rule 2: Divergence
The pullback into the demand zone showed weakening downside momentum before the reversal.
Status: ✔ Present
Rule 3: Convergence
After the reversal:
Price moved higher.
Trend indicators and moving averages aligned upward.
Momentum accelerated with structure confirmation.
Status: ✔ Confirmed
QuantFlow Score
Rule | Status |
Outside Bar | ✔ |
Divergence | ✔ |
Convergence | ✔ |
BOS Confirmation | ✔ |
Demand Zone Rejection | ✔ |
This is a high-quality QuantFlow setup.
4. Moving Average Analysis
The moving averages appear stacked bullishly:
Fast MA above medium MA
Medium MA above slow MA
Price trading above all major averages
This is classic trend continuation behavior.
Bullish Alignment: Strong
5. Trendline Analysis
Primary Trendline (Green)
Multiple touches.
Holding support.
Current rally originated near this line.
Resistance Trendline (Red)
Previously capped price.
Recently broken and converted into support.
This is a very bullish technical development.
6. Momentum Analysis
The latest candles show:
Strong bullish bodies.
Minimal upper wicks.
Consecutive buying pressure.
This indicates:
Buyers are willing to pay higher prices.
No major rejection yet.
Momentum currently favors continuation.
7. Key Levels
Immediate Resistance
215.15 (current area)
215.80 – 216.00 psychological resistance
Major Target Zone
The black projection arrow is targeting:
216.00 – 216.20
which aligns with:
Upper channel projection
Previous swing extension
Psychological round-number resistance
Support Levels
First Support
214.60 – 214.80
Second Support
214.20
Major Support
213.35 – 213.80 demand zone
8. Trade Scenarios
Bullish Scenario (Higher Probability)
Conditions:
Price stays above 214.60
Higher lows continue forming
Demand zone remains intact
Targets:
215.50
215.80
216.00+
216.20
Probability: High
Pullback Scenario
Price may:
Retrace into 214.60–214.80
Retest the broken structure
Continue higher afterward
This would be a healthy trend continuation pullback.
Probability: Moderate
Bearish Invalidation
Bullish structure becomes questionable if:
213.80 demand fails
Price closes below 213.35
Trendline breaks decisively
Then a deeper retracement toward 213.00 or lower becomes possible.
Summary
Overall Bias: Bullish (8.5/10)
Market Structure: Bullish BOSTrend: Uptrend intact Demand Zone: 213.35–213.80 holding stronglyQuantFlow Setup: Outside Bar + Divergence + Convergence = Valid EntryMost Likely Path: Pullback or consolidation followed by a move toward 215.80–216.20
The strongest institutional footprint on this chart is the rejection from the 213.35–213.80 demand zone, which is the level I'd monitor most closely for continuation opportunities.
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