Market NewsTechnical Analysis

GBP/JPY: Bear Starts Its Move

December Retail Sales Slump GBP/USD
  • GBP/JPY has made a significant bearish move on the H4 chart.
  • The SMA 30 has been working as a resistance after a long time.
  • The H1 chart looks good for the sellers.
  • Intraday minor charts have been bearish.
GBP/JPY H4 Chart
GBP/JPY H4 Chart

GBP/JPY – Technical Analysis- H4 Chart

The chart shows that the price made a long bullish move before making a bearish breakout at the simple moving average 30’s support. It made a bullish correction and produced a bullish reversal pattern right at the SMA 30’s resistance. As of writing, the pair has been bearish. It may continue its move towards the South as the chart offers enough space to continue its journey. It may find its next support around 188.000.

On the contrary, if the price breaches the SMA 30’s resistance, the buyers may look to go long in the pair again. However, as things stand with the pair, it may not happen. Moreover, it surely will take time to happen. Meanwhile, the sellers are going to drive it towards the downside.

GBP/JPY H1 Chart
GBP/JPY H1 Chart

Price Action Analysis- H1 Chart

The chart shows that the price has been down trending by obeying a trend line. At the last rejection, it produced a bearish engulfing candle and made a strong bearish move. The sellers are going to wait for the price to consolidate and find resistance to drive the price towards the South further. The next bearish move may find the support around 189.000. Notably, the chart offers more space, so the journey may continue and end up being a long bearish journey.

The buyers, on the other hand, are to be very patient. They may not find their opportunities soon.

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

Contact and follow Tareq on Twitter: @tareqfpn

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