Market NewsTechnical Analysis

GBP/JPY: Bear Makes a Breakout to Move Towards the Swing Low

  • GBP/JPY made a significant breakout at the SMA 30 on the H4 chart.
  • It may head towards the last swing low at 178.650.
  • The H1 chart looks bearish; may find its support around 180.000.
GBP/JPY H4 chart
GBP/JPY H4 chart

GBP/JPY – Technical Analysis- H4 chart

The chart shows that the price has breached the simple moving average 30’s support. Before making the breakout, it consolidated around the SMA for a while. Thus, the sellers may go short in the pair and drive the price towards the level of 178.650. Since there is enough space for the price to travel towards the downside, it may attract more sellers. Thus, the next bearish move may generate enough momentum.

On the upside, the buyers may wait for the price to go above the SMA 30. If that happens, they may find some long opportunities.

GBP/JPY H1 chart
GBP/JPY H1 chart

Price Action Analysis- H1 Chart

The chart shows that the price has been heading towards the South by obeying a trend line. At the last rejection, it produced a bearish inside bar and made a strong move. However, the level of 180.00 may hold the price as a support. The sellers may take a pause down there. A breakout at that level may drive the price towards the South further. If the level continues to work as a support and pushes it towards the North, trendline’s resistance may come into play and determine its next route.

Considering both charts, it seems that the bear is clearly ahead. It may get sluggish, but it looks strong enough to continue its move and head towards the level, where it found a hinder in the last week and week before that.

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

Contact and follow Tareq on Twitter: @tareqfpn

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