The market structure of GBPJPY is bearish right now. Earlier we took a sell and we will continue looking for sells once market tests our support turn resistance level at 150.50. This area will turn out to be strong as it holds major order flow at the level.

At the resistance level of 150.50, we have a confluence of the golden retracement level of 75-78.6%. This confluence of resistance with the retracement determines the strength of the region.

EMA 50 has just been pierced and is now looking for a retest after testing the EMA.

The EMA’s have a bearish death cross, which indicates market still has a bearish pressure. Once at the resistance, it might retest the EMA 50, which will confluence with the retracement and resistance.

With the oscillators, both are in the bearish region. RSI and CCI need to channel back to the neutralized levels. At the resistance, we will asses the movement of the oscillators and then will see the confluence.

GBPJPY is a in a downtrend. Its better to follow trend, than to trade counter trend. We will short the market at the marked resistance area. If market breaks above the resistance, then only we can see the bullish momentum to pull up force.

Bearish wickfill

Dec 08 2021