According to our analysis published on 11th and 13th August, we posted strong bearish sentiments on Great Britian Pound versus Japanese Yen and a selling signal with entry price 152.98 and targeted destination 149.09. We anticipated this move in accordance to the analysis published on 6th August which suggested that the market structure in four hourly chart and daily was suppose to be considered 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, indicated 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. We took 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 had also moved below exponential moving average 50 and 200 with a closing below daily exponential moving average 50 and intraday moving averages which got us the further confirmation of bears taking the orders.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

From the current market situation, specifically keeping 50% fibb retracement level in this zone is suggesting that the bears are going to lead the market on a temporary note to complete its bullish correction. Our lower major trend line at 150.30 has more liquidity and formed strong supply demand zone in this area. 150.60 was a major price action which Great Britian Pound versus Japanese Yen was able to reverse above to recover losses while also forming a strong bullish engulfing in daily. In four hourly chart we already have a breakout of minor degree and so will be the case in daily but our expectation will be tied to the market with pursuing 152.30 first. 

GBPJPY

Aug 18 2021

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