Market NewsTechnical Analysis

GBP/JPY: Bear is in the Town

  • GBP/JPY has been bearish finding its resistance at a flipped level.
  • The SMA 30 has been working as a resistance.
  • The H1 chart trades around yesterday’s lower low after being bearish.
  • Intraday minor charts have found their support.
GBP/JPY H4 Chart
GBP/JPY H4 Chart

GBP/JPY – Technical Analysis- H4 Chart

The chart shows that the price made a bearish breakout at the simple moving average 30. Then, it made a bullish correction and produced a bearish engulfing candle breaching the swing low. As of writing, the pair is in consolidation around the breakout level. Thus, the sellers may be very keen to go short on a bearish short signal. The price may find its next support around 183.000.

On the other hand, the sellers must wait for the chart to make a strong bullish move or to produce a bullish reversal pattern such as double bottom. It means the bull may not come into play soon.

GBP/JPY H1 Chart
GBP/JPY H1 Chart

Price Action Analysis- H1 Chart

The chart shows that after being bearish the price had a bounce at 186.000. The level produced a bullish engulfing candle, but the buyers did not look interested to push the price towards the North. Instead, the price has come down. As of writing, the pair trades around the level again.

Being a round number along with the previous price action around this level make it a very significant level. The buyers may wait to get a bullish candle to go long above 186.670. The price may find its next resistance around 187.600 in that case.

On the other hand, a bearish breakout at the horizontal level may generate more bearish momentum and drive the price towards the downside. The price may find its support around 185.200.

Written by: Md Tareq Sikder, Senior Analyst Forex Prop News

Contact and follow Tareq on Twitter: @tareqfpn

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