Great Britian Pound versus Japanese Yen failed to break above our upper trend line on the daily chart and took a bearish reversal from 152.80 at Senkou Span B of the ichimoku cloud while driving all the way below exponential moving average 50 in daily. Currently the market is trading below the ichimoku cloud - taking Senkou Span A as another resistance supported by the upper trend line at 152.30. The impulsive bullish correction which initiated from 50% of the fibb retracement level - has most probably been completed at 152.80 and the failure to break above, followed by a closing below the 152.20 price action - is indicating that the bears will be taking over the market sooner than later. The awaited dovish sentiments will drive the pair towards 61.8% of fibb level, however, a further breakout below 150.50 will trigger GBPJPY to dive towards 50% fibb i.e 149.0. Investors remain worried about the fast-spreading Delta variant of the coronavirus and a global economic slowdown. The concerns were further fueled by disappointing Chinese macro data, which underscored recent signs of slackening economic momentum in the world's second-largest economy. This, in turn, underpinned traditional safe-haven assets.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES 

The cross extended the previous day's dramatic pullback from the 152.85 area, or one-month tops and witnessed heavy selling for the second consecutive session on Wednesday. The downfall was exclusively sponsored by a strong pickup in demand for the safe-haven Japanese yen, though bulls showed some resilience below the 151.00 round-figure mark. Nevertheless, the overnight sustained break below important horizontal support near mid-151.00s favours bearish traders and supports prospects for a further near-term depreciating move. Hence, it remains to be seen if bulls are able to capitalize on the attempted recovery move or the GBP/JPY cross meets with some fresh supply at higher levels.

GBPJPY

Sep 17 2021