GBP/JPY has been bearish in the daily chart. The price after producing a Tweezer Top headed towards the South. It consolidated for a while and made a breakout at consolidation support. Yesterday’s candle came out as a bearish candle with a long body. Thus, the sellers may keep their eyes on the pair to go short below the wave’s lowest low. The H4 chart looks bearish biased, but it may take time to offer short entries. However, the H1 chart looks good for the sellers. Let us now have a look at these three charts.
Chart 1 GBP/JPY Daily Chart
The chart shows that the price had a rejection at 139.740 and produced a Tweezer Top. It then headed towards the North and had a bounce at 133.600. Upon producing a bearish reversal candle, the price headed towards the South again. Yesterday’s candle closed within 132.360. The sellers may go short below that level and drive the price towards the level of 129.330.
Chart 2 GBP/JPY H4 Chart
The chart shows that the price upon producing a double top made a bearish move. It had a bounce at 132.400. The level may continue working as a level of support and push the price towards the level of 133.550. The sellers are to wait for the level to produce a bearish reversal candle to go short below the level of 132.400. The price may find its next support around 130.845. If the price breaches through the level of 133.550, the price may head towards the North at a moderate pace and find its next resistance around 136.000.
Chart 3 GBP/JPY H1 Chart
The chart made a strong bearish move and had a bounce at 132.400. It has been in a bullish correction. The level of 133.040 has been working as a level of resistance. It has already produced a bearish engulfing candle. The pair is trading around the level as of writing. If it produces another bearish reversal candle, it will drive the price towards the level of support. The sellers may go short below the level of 132.400. The price may find its next support around 131.200. If the price breaches through the level of 133.040, the price may head towards the North and find its next resistance around 133.575. The daily chart is bearish biased. The H1 chart looks more likely to make a breakout towards the South.
The H4 chart needs time to get very bearish. However, the daily and the H1 chart look good for the Bear. Considering these three charts, it seems that the price may end up producing another bearish candle in the daily chart.