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 46. We will wait for the market to retrace back at the 50 level of the RSI in order for the market to reverse towards the bearish trend.

GBPJPY looks bearish

Jan 30 2023