A wonderful bearish setup has formed on GBPJPY, after it took us out on our sells.

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 156.50, where we will see if we print any bearish candle for eg. pinbar or an engulfing candle. Market is about to hit the major resistance on the pair.

The retracement zone of 61.8% and 75% is in confluence with the resistance level along with the bearish trend.

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. Although EMA 50 was broken out for buys but the market is still in the range and has the potential to move down from this area.

RSI is at the 33 level, which is near about the over sold region. We need to wait for the level to neutralize at the 50 level in order for the market to align with other technical parameters.

Continuing GBPJPY shorts

Jan 16 2023