- GBP/JPY has been very bearish on the H4 chart.
- The pair trades well below the Simple Moving Average 30.
- The H1 chart has been very bearish.
- Intraday price action has been bearish may make some bullish corrections.
GBP/JPY- Technical Analysis-H4 Chart
The pair has been bearish by obeying the Simple Moving Average 30. At the last rejection, it produced a spinning top. However, it has made a strong bearish move. As of writing, the pair seems to be heading towards the South further. Defensive sellers may want to wait for the price to consolidate and produce a bearish reversal candle to go short in the pair. The price may find its support around 180.500. A bearish breakout below that level may drive the price towards the South further.
On the upside, the buyers must wait for the pair to show some strength towards the North. A strong bullish move breaching the simple moving average 30 or a double bottom may change the scenario. As things stand with the pair, it may take time to happen.
Price Action Analysis- H1 Chart
The pair seems to be heading towards the South by obeying a trend line. The price stays way below the trend line. Thus, the sellers may want to wait for the price to produce a bearish reversal at the value areas to go short in the pair. The price had a bounce at 180.800. It may hold the price as a support for a while. If that happens, the sellers may keep their eyes on the pair to go short and drive the price towards 180.000.
On the contrary, the buyers might as well wait to go long in the pair. It would not give them a lucrative risk-reward.
Considering both charts, it seems that the pair may remain bearish for some days. It may get sluggish, but it would make some good bearish move whenever the sellers find some resistance to set their stop loss.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn