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 area of resistance is 161.60.

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 54. We will either wait for the bearish divergence to be formed at the over bought region or wait for the market at the 50 level breach towards the bearish side.

GBPJPY shorts from resistance

Jan 27 2023

Stop Loss -0.36%

Holding time 3hr

161.557

Entry price

162.144

Stop loss price