- GBP/JPY has been bearish on the H4 chart.
- The H4 chart produced a bearish engulfing candle at the SMA 30’s resistance.
- The H1 chart looks choppy looking for a direction.
- Intraday minor charts were bearish in Tokyo session.
GBP/JPY – Technical Analysis- H4 chart
The chart shows that the price has been bearish for a while upon finding its resistance around 188.500. On its way, it made a breakout at the simple moving average 30’s support and continued its move for one more candle. It then made a bullish correction. The chart produced a bearish engulfing candle right at the SMA 30’s resistance. The sellers took the opportunity and drove the price towards the South. The price may continue its move and find its next support around 185.300,
On the other hand, the buyers must wait for the chart to make a strong bullish move or to produce a bullish reversal pattern to look for long opportunities in the pair.
Price Action Analysis- H1 Chart
The chart shows that the price has been heading towards the South by obeying a trend line. It had multiple rejections at the resistance of that trend line. Thus, traders are to count the trend line before making any trading decision based on this chart. The sellers may wait for the price to make a breach at the last swing low to go short. Alternatively, if the price makes a bullish correction, they may wait to get a bearish reversal pattern at the trend line to go short in the pair. The price may find its next support around 185.900.
Considering both charts, buyers should be patient with the pair and wait until it produces a good ground for the bull. Meanwhile, the bear may continue its dominance and end up making a new low. The H4 chart shows that it has enough space to travel towards the downside, which is another reason that we may see bear’s dominance in the pair.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn