GBPJPY has been playing along in the same direction as rest of the pairs against Japanese Yen - taking an exit from the oversold conditions in one hourly and four hourly time frame after ending its bearish move with 186 pips from our previously published analysis on 18th Aug. The weekly time frame is suggesting that the pair might be under selling pressure and is set to continue its dovish trend soon - preceeded by a strong bullish correction which ended on 12th Aug at 153.40 and we might be currently in wave 1 of the down trend. The relative strength index in weekly and daily both are portraying bearish momentum with GBPJPY losing its bullish strength, specifically returning from Senkou span B of the ichimoku on daily chart. The sharp bullish reversal taken from 149.20 was due to the exponential moving average 200 in daily on that level along with reverting some losses after entering into the oversold zones in four hourly and one hourly time frame. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

GBPJPY faced a dovish tone from 151.0 price action and made a decisive doji candlestick forwarded by providing us with a closing below the exponential moving average 50 in four hourly timeframe. 150.0-150.20 is another important price action acting as a support, for confirmation of the continuation of dovish trend, we would need to acquire an impulsive bearish closing below the aforementioned support zone. From the current market structure we can expect that GBPJPY will be reverting its gains from around 61.8% fibb retracement level and moving down towards 50%fibb again, most probably a closing below and creating a lower low. On the bullish side, if GBPJPY was able to provide a breakout above 150.80-151.20 with a bullish impulsive closing then that might lead the pair towards 153.20. 

GBPJPY

Aug 24 2021