GBPJPY had been tough for me to trade lately. Currently, the trend on the pair is bearish with the formation of lower lows and lower highs. This formation has to continue moving down as the market has left a footprint of its shadow, which needs filling. We will take a short position on the bearish price action till the 50% of the wick, almost giving us 120 pips.

The ascending trendline has broken out for sells and the market has validated the notion of the breakout sell.

There is no retracement on this pair at the moment. 

EMA 50 is also bearish. I don't see a confluence forming at the retest of the EMA 50 at the resistance level. Therefore, we will only take EMA 50 as a bearish sign for the trend.

RSI is at 25. It needs to neutralized, as our previous posts suggest, at the 50 level. This level is where we see an intrinsic value for the pair to continue trend.

Wickfill incoming on GBPJPY

Oct 03 2023