- GBP/JPY has been bearish on the H4 chart breaching a significant support.
- The pair is traded well below the simple moving average 30.
- The H1 chart looks bearish.
- Intraday minor charts have been bearish.
GBP/JPY – Technical Analysis- H4 chart
The chart shows that the price has been heading towards the South with good momentum. On its way, it has breached the level of 184.650, where the price reacted several times earlier. The sellers may keep their eyes on the level next to go short from here. The daily chart suggests that the pair may find its support around 183.800. The sellers may drive the price towards the South further if it breaches 183.800 and find its next support around 181.150.
The buyers may not make any trading decision based on this chart. They may have to wait for the chart to produce a bullish reversal pattern or a strong bullish move. As things stand with the pair, it may take time to happen.
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 engulfing candle and moved towards the South. The level of 185.070 worked as a support. However, it got breached and the price continued its bearish move with stronger momentum. The sellers may wait for the price to make a correction or consolidation to offer them entries with lucrative risk-reward. The H4 chart shows that there is enough space for the price to travel. This is another reason that sellers will be interested to go short in the pair.
Considering both charts, it is explicit that we may see bear’s domination. That is too may remain for quite a while.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn