GBJPY has just broken the resistance at 167 and is now tapping the minor resistance at 167.70 This level is a solid previous high resistance which can act as a reversion/rejection of the prices to continue the bearish trend on H4. Market has formed lower highs and lower lows previously and we anticipate another short dive towards the second support level below the previous low.

We see a bearish penant forming for the bearish move on the pair. This bearish penant might break the trendline towards the bearish side and continue validating the bearish cycle for the move. 

The retracement level of 78.6% is in confluence with the resistance level which is a high probability short setup.

The EMA 50 has turned bearish but is upward curved. This curve tends to bow down towards the bearish side in order to have a steep bearish decline of GBPJPY. We also see the EMA 50 retesting at the resistance level.

RSI is at 63. This oscillator needs to be neutralized at the 50 level, along with the tap at the resistance level. These multiple technical factors add up for the purpose of having multiple confluences and the market may then tap down. We can also wait for the market to head on to the over bought region, where a bearish divergence can be formed.

Shorts from 78.6%

Nov 21 2022