- GBP/JPY trades around the SMA 30’s support on the H4 chart.
- A breakout below may drive the price towards the last swing low.
- The H1 chart looks bearish and has enough space towards the downside.
- Intraday minor charts have been bearish.
GBP/JPY – Technical Analysis- H4 chart
The chart shows that the pair has been having a bearish correction on the H4 chart. As of writing, it trades right at the simple moving average 30’s support. If the support produces a bullish reversal signal, the buyers may push the price towards the North. The chart suggests that the price may find its next resistance around 184.000.
On the contrary, if the price breaches the SMA 30’s support, the sellers may drive the price towards the South. In that case, it may find its support around 179.800.
Price Action Analysis- H1 Chart
The chart shows that the price was up trending by obeying a trend line earlier. Upon finding its horizontal resistance at 182.150, the price headed towards the South with a good momentum. On its way, it made a breakout at the trend line’s support as well. As of writing, the pair trades below the trend line. Thus, the sellers may drive the price towards the downside. It may find its support around 179.800.
On the contrary, if the price goes above the trend line, the buyers may look to go long in the pair. As things stand with the pair, it may take time to happen. Meanwhile, the sellers are going take the price towards the last swing low.
Considering both charts, it seems that the H4 chart looks slightly better for the buyers. On the other hand, the H1 chart looks very good for the sellers. Thus, traders are to be very watchful making any trading decision based on these two charts.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn