GBPJPY is resting on the support zone after a breakout buy from the resistance. This support seems vulnerable to break for the reason of the downwards pressure building on the pair. The price of the support is at 162. It should be noted that market on a higher time frame is forming a lower low and lower high, indicating a bearish trend. 

The descending trendline has tapped the market and rejected the trendline. It is an indication for the bearish move.

The retracement level of 78.6% was in between the support and resistance level and the market has already tested the retracement and started to move downwards. We anticipate a continous downwards movement. 

EMA 50 is still bullish and is resting below the support level. If market breaks out from the EMA 50, then there is a high chance that the market will continue moving down.

RSI is at 54. It needs to head over towards the over bought region from where the market can form a bearish divergence and continue moving down.

GBPJPY set to breakout for sells

Mar 22 2023