The market structure of GBPJPY is bearish on H4 and daily. On the weekly time frame, the market rejected the support level and is still bullish. As per the drop down analysis, we will find setups on H4 for GBPJPY. 

The resistance level lays perfectly at the price of 151.80. This is the area of major liquidity and supply. If market breaks this level, we will change the course and continue bullish. Till now, as per H4, trend is bearish and we will take a short at the level.

There is only one descending trendline, which has been pierced for the breakout buys. The candle was broken with force and validated. The only challenge we face for the trendline to be fully functional for the buys, is the structure to turn bullish. Until then, the breakout buys of the trendline still need confirmation.

The 75-78.6% retracement level is in confluence with the supply zone at the price of 151.80. This confluence is a strong one given we have both the parameters supporting the short position.

EMA 50 has been broken out where as EMA 200 is being retested right now. At the resistance level, EMA 200 is in confluence by retesting it. This gives us another factor to endorse for our short positions.

On the charts, there is no strong indication for shorts on the oscillators. RSI and CCI are both heading down towards their neutralize levels. We may see a RSI bearish divergence once the market taps the resistance level. Other than this, we can only wait for oscillators to align with the bearish structure of GBPJPY.

Once GBPJPY reaches 151.80, we will take the shorts. It should be noted that we are still in a bearish trend, but also we may face a reversal based on higher time frames. The stop loss should be tight and we should get out of the market as soon as market breaks the resistance.

Another short on GBPJPY

Sep 28 2021

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