GBPJPY took a massive dip after the YEN yield news earlier this week. Market nosedived and created a lower low and lower high formation, ultimately leading to the bearish trend confirmation. As the market is bearish right now, we will wait for the market to head towards the resistance area from where we will be taking the shorts. The prices at this area are 163. 

The ascending trendline has broken out for sells and might form another trendline breakout sell on the lower time frame once the market reaches the resitance. 

The retracement levels have formed a zone which are in confluence with the resistance level of the 50-61.7% of the retracement. This area seems strong for a bearish impulse further down.

EMA 50 is still bearish and has a steep downwards sloping. We might not see a retest of the EMA at the resistance level.

RSI is at 33. We need to see where the market heads with the above neutralized level of the RSI. If the market is at the over bought region and technically at the resistance level, we have a good opportunity to short the market.

More room towards the bearish side on GBPJPY

Dec 23 2022

Stop Loss -1.61%

Holding time 7d1hr

163.236

Entry price

165.871

Stop loss price