GBPJPY exhausted itself at the over bought region and extended its bullish run. Now, we forecast it to make a retracement towards a bearish side. A strong retracement which would indulge in a short term bearish momentum on the pair. We are looking at bearish engulfing candles being formed at the support level and on the verge of breaking out from the support priced at 173.65.

The ascending trendline is on the verge of breaking out for the sells. The breakout sell will be done and it will validate the whole bearish move.

There is no retracement currently on the pair as the bearish momentum is strong.

EMA 50 is still bullish and we can take the partial profits off the table once it retests the EMA 50. 

RSI is at 53. Once the support breaks, we assess the RSI being in the bearish region below the 50 level and driving down towards the over sold region till 25. This streak will continue towards the bearish side.

Shorts on GBPJPY after breaking the support

Jun 05 2023