We published our analysis on Great Britian Pound versus Japanese Yen on 1st August - explaining the market from technical point of view calling the current market structure in four hourly chart and daily as the end of bullish correction of higher degree and as the pair failed to provide us with a fractal confirmation above 153.35-153.50 and reversed below 153.0, indicates that the exponential moving average 50 will be the bearish driving force for GBPJPY and make it land towards 61.8% and 50% fibb retracement levels. This might be the continuation of our bearish rally due to the weakness of pound and strength of king dollar or a slight break above our previous daily high i.e 153.40 would make GBPJPY run on parallel footing with USDJPY for as we know that the JPY pairs are mostly riding in the same direction. For now we are taking the failure of GBPJPY to breakabove the aforementioned level and the neutrality of this supply and demand zone as a bearish reversal for the pair before any legitamate breakout at either ends. In four hourly chart it has already started to move towards exponential moving average 50 and 200 but a closing below daily exponential moving average 50 and intraday moving averages would get us the confirmation of bears taking the orders now.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

GBPJPY bullish momentum is being limited by the resistance provided in shape of our upper trend line at the levels mentioned above in our market forecast. The intraday moving averages 8,13,21 might become a temporary hurdle in terms of a minor degree of bullish reversal to the pair but ultimately we will be monitoring the markets move as a retest to our upper trend line followed by the continuation of our expected bearish rally. 

GBPJPY H4

Aug 06 2021