GBPJPY stalled since surging to the highs. The market had been forming higher highs and higher lows, and was in an uptrend. We will look for shorts at the resistance, which will form a head and shoulders pattern. Once the price action forms a bearish candlesticks, it can plummet towards the support level priced in at 163. We need to be aware of the fact that the market has formed the lowe low in its previous move.

The ascending trendline has broken out for sells and is on the verge of forming another breakout sell on the lower time frame. 

The retracement level of 61.8% is in confluence with the resistance level which has formed the head and shoulders pattern.

EMA 50 is blanketing the market from below, meaning market has formed a bullish trend. The EMA 50 might slip and cause the market to spur downwards, hence, making the fall as a breakout sell. 

RSI is at 54. This means it needs to go higher towards the over bought region and then align with the technical parameters. 

Head and shoulders forming

Apr 10 2023