GBP/JPY: Sellers Wait for a Breakout to Take it Towards the New Low

• GBP/JPY has been bearish on the H4 chart,
• The pair had a rejection at the SMA 30’s resistance headed towards the South in a hurry.
• The H1 chart looks bearish may consolidate around the swing low.

GBP/JPY – Technical Analysis- H4 chart

The chart shows that the price had a strong rejection at the simple moving average 30’s resistance earlier. Since then, it has been bearish heading towards the South in a hurry. As of writing, the pair trades around the level of 178.560. The price had a bounce at this level earlier. Thus, the sellers may want to take a pause here. A breakout below the level may generate more momentum and drive the price towards the level of 176.400.

On the contrary, if the level holds the price as a support and produces a bullish reversal pattern, the buyers may go long in the pair and push it towards the North. However, it may not be a long move since the SMA 30 has been working as a resistance.

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 last swing low with good momentum. As of writing, the pair trades around the level of 178.560, where it had a massive bounce earlier. The buyers may wait for the price to produce a bullish reversal pattern to go long in the pair.

On the other hand, the sellers are to wait for the price to make a bearish breakout at the support to go short upon having a reversal pattern at the value areas. The price may find its next support around 177.000.

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

Contact and follow Tareq on Twitter: @tareqfpn