Technical analytics

GBPJPY market technical outlook

GBPJPY

Daily chart:

Upswing has reached the stiff pivot-zone 136.25-136.60, where we can observer dampening of buyers today with potential bearish inside bar by the end of the day (black round mark). If such setup is formed eventually, this would become a solid short-signal in direction of support 134.00.

In a longer outlook we might also consider a decline to 131.74-131.93.

H1-chart:

Downward reversal via the bearish pattern “double high” was performed at resistance level 136.59. This setup can be regarded as confirmed as sellers already broke local support 136.29 and now they are confidently heading in direction of mid-term support level 135.26, where we can expect a start of correction.

Conclusions:

Decline to 135.26, then pullback in direction 136.00 and afterwards decline will be resumed.

Trading recommendations:

  1. Shorts to 135.26.

  2. Longs from 135.26 to 136.00.

  3. New mid-term shorts from 136.00.