GBP/JPY: The Bear is in the Town, What is next?

• GBP/JPY seems to be getting bearish on the H4 chart.
• A massive support may hold the price.
• The H1 chart looks very bearish.
• Intraday minor charts have been bearish.

GBP/JPY- Technical Analysis-H4 Chart

The pair made a significant bearish move on the H4 chart with a bearish breakout at the Simple Moving Average 30. However, the price may find its support around 182.700. The sellers may wait for the price to go beyond that level to go short in the pair. A bearish breakout at 182.700 may drive the price towards 181.650.

On the upside, the buyers must wait for the price to produce a strong bullish reversal candle followed by a bullish breakout at the SMA 30. A breakout followed by a bullish reversal pattern at the SMA 30 may push the price towards the upside. The price may find its resistance around 186.000.

Price Action Analysis-H1 Chart

The chart shows that the price has been heading towards the South with good bearish momentum. It has been obeying a bearish trend line. At the last rejection, it produces a bearish engulfing candle. The price then headed towards the downside in a hurry. The sellers may wait for the price to consolidate and produce a bearish reversal pattern at the value area to add more short entries. Since the last swing low is not far away, it may find its support soon. The sellers may keep their eyes on the chart closely to find short opportunities in that case.

The H4 and the H1 chart look good for the sellers. As things are going with this pair on these two charts, we the pair may remain bearish for a while. Let us wait for the price to offer some short entries from the value area to get lucrative risk-reward.

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

Contact and follow Tareq on Twitter: @tareqfpn