GBJPY has just broken the resistance at 167 and is now tapping the minor resistance at 168.70 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 bullish 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 39. With this level of bearish move, we would hope to see the RSI jot back to the neutralized level of 50 in order for the market to take other technical factors in line for another bearish leg.

Riding the bear wave

Nov 28 2022