GBPJPY has been bearish since last month. The bearish confirmation was visualized with the formation of lower lows and lower highs. The trend is now bearish on daily and h4. Market has broken the major support level, which has now turned resistance. The price at this resistance is 159, where we will see if we print any bearish candle for eg. pinbar or an engulfing candle. 

There is no retracement or trendline indication in this setup. Its a textbook breakout and retest setup.

EMA 50 is also bearish and we do not see the retest happen at the resistance level which would make it in a confluence technical setup.

RSI is over sold at the level of 25. This needs to be neutralized at the 50 level before we take any short position on GBPJPY.

It is to be noted that this setup is a breakout and retest setup and can turn out to be risky.

GBPJPY breakout and retest

Jan 02 2023