GBPJPY has been ranging since a past few days and overall is bearish. The trend is bearish with the formation of lower highs and lower lows. That being said, we have broken a minor support which has now turned into a resistance. Any retest at this resistance in confluence with the bearish candle being printed, we will take the short position.

The ascending trendline has been broken out for sells as well and is due the validation for the candles closing and opening below the trendline. On the other hand, we have a descending trendline which might not break out and instead, be retested at the resistance level, forming a confluence.

There is no current retracement indication in this setup.

EMA is still bullish but on the verge of being broken out for sells. If this happens before the retest, we may have another upcoming confluence formation at the resistance level.

RSI is at 44. This is the bearish region and well aligned with the overall trend. Once the RSI neutralizes at the 50 level, along with the technical factors standing at the resistance level, we will take the short position.

GBPJPY bearish

Jan 25 2023