GBPJPY has been slowed down due to the end year. The bearish trend continues to dominate till the structure depicts otherwise.

The market structure of GBPJPY is still bullish on higher time frames, but bearish on daily and below time frames. On weekly, market broke back in from the resistance turn support. This means, GBPJPY did a fakeout for the bullish breakout. Until the market breaks above the 154.30, we will be looking at the bearish sentiment.

The descending penant has been formed on the H4. GBPJPY has triggered the breakout sells of the ascending trendline. After this breakout sell, we have another breakout sell on H1, this will trigger the short pressure further.

At the resistance level, we have a confluence of the golden retracement level of 75-78.6%. This retracement having a confluence on the support level highlights the strength of this region. This retracement completely aligns with the supply zone as well. This supply zone will act as a catalyst for the market to gather liquidity to bring it down.

Both the EMA 50 and EMA 200 are in a bearish sentiment, with a bearish death cross. The market is ranging within the EMA’s right now, with no clear direction of the EMA bias. Given the bearish death cross, we can assess that we are more focused towards the short side than the buy side.

With the oscillators, there is still no clear direction. The RSI is slightly above the neutral region, and the CCI is in the mid range of the neutral and over bought region. Until either of the oscillators provides us with the bearish signal below the neutral level, the oscillators stay undecided.

Although we are bearish on GBPJPY with a decent setup, if the market breaks the previous high, we will take the loss and look for the next trading plan.

GBPJPY shorts

Nov 23 2021

Take Profit +0.85%

Holding time 2d3hr

154.108

Entry price

152.797

Take profit price

2