GBP/JPY Found Some Support

GBP/JPY bounced off from the resistance at 149.30 after it formed a hanging man candlestick and a shooting star candlestick below that level on the four-hour time-frame about a week ago, and the pair has been moving to the downside ever since. Today it finally found some support at 145.70 and formed a pair of spinning top candlesticks at that level on the same time-frame, then bounced off from the support. Considering those candlesticks, there may be some retracement towards 146.50, or even towards 147.00, which is the (MA)89 indicator on the four-hour time-frame. The overall trend, however, is still quite bearish and the pair will likely eventually continue falling.

GBP/JPY Is Very Bearish

GBP/JPY has been testing the support at 104.05 – 104.00 since the end of last week, and even though the pair has formed a distinct spinning top candlestick on the daily time-frame at that level the pair remains very bearish. Should the spinning top candlestick on the daily time-frame prove to be a valid signal for a move to the upside after all there would likely be a rally towards the closest resistance level, which is at 141.00. That said, considering how strong the bearish trend is the move to the downside will probably continue once the pair breaks out below the aforementioned support at 104.00 – 104.05, as well as the previous low at 139.80. When or if that happens the next target to the downside is likely around 138.70.

GBP/JPY Might Retrace

 

The GBP/JPY trend is exceedingly bearish, that much is obvious on all time-frames, especially on the longer ones, from the daily to the monthly time-frames. However, the pair has formed a doji candlestick on the four-hour time-frame, right above the support at 141.25. The doji candlestick is a signal for indecision, rather than reversal, but it could be an indication for a short-term retracement, likely towards 142.00 or even towards the resistance at 142.50 before the move to the downside continues. That the move to the downside will continue is almost certain, considering the impressive hanging man candlestick and spinning top candlestick that have formed on the monthly time-frame at 148.00.