GBPJPY is in a bearish trend with the formation of lower lows and lower highs. The market has formed another impulse bearish leg and has the potential to continue moving down after a corrective move towards the resistance level priced at 159.60. This level will be held as the strong foothold of the level in order to bring it down towards the base line of the support.

The descending trendline has been retested at the resistance level once and will be rejecting at the resistance level second time. It will form a confluence once the market reaches that level.

The retracement level of 61.8% is in confluence with the resistance level.

EMA 50 is already bearish and has earlier been tapped and rejected by the market at the resistance level. We will see what we can do at the resistance level while touching the EMA 50.

RSI is at 42. Market needs to neutralize at the 50 level in order to confluence with the resistance level. If not, it passes through the over bough region and forms a bearish divergence at the resistance level.

GBPJPY sells from 159.60

Feb 10 2023