GBPJPY has been in a bearish trend, with slight corrections towards the bullish side. The lower lows and lower highs continue to be the factor for the bearish pressure persistant on the pair. This fact factored in with the resistance level will seem to be the major sell of area. We are looking at the 160.50 area for sells all the way towards the support level at 158. On higher time frames, we are still bearish across the board. 

The ascending trendline has been broken out for sells with a strong bearish engulfing candle. This validation will be elusive of the decision to the final bearish continuation. Once the prices have closed and opened below the trendline on h4, we will have our validation for the continuation. This being said, we do see a validation on the h1. The retracement factor is due after the trendline breakout sell which hovers at the resistance level of the price we mentioned earlier. 

The resistance area of 160.50 is in confluence with the golden retracement area of 75-78.6%. This confluence will turn out to be a major key resistance level to reverse the market towards the support level.

Both the EMA's are bearish and have a bearish death cross. The EMA 200 is potentially going to tapped at the resistance area. This tap will add to the confluence of other technical factors of the sells. 

Currently, both the oscillators are in a bearish region with RSI being at 43 and CCI being at -123. At the resistance level, we may see a neutralization of the pair. This neutralization will act as a catalyst for the further push down, given that market prices turn bearish from the resistance level.

GBPJPY shorts from 160.50

May 24 2022

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