GBPJPY Approaching Key Level

In long-term time frame, GJ is in an uptrend and bullish. In lower time frames we see that price is moving in a minor downtrend.

Price has made a lower high but failed to make a lower low and was pushed to the upside after retesting the S3 around 165.192 which is a strong support level.

On the other hand, price failed to break the R1 and got rejected from it and is being pushed to the downside.

I expect GJ continues dropping for now towards the next support level (S2) which is around 166.744. Afterwards, because S2 is a key level and might push the price to the upside and reverse the movement, we should wait for price to see if it breaks this level (S2) or not:

If price breaks S2 strongly, the next target would be the next support at 165.200 (S3).

On the other side, if price failed to break S2 and was pushed to the upside, we expect a rise on GJ towards the red resistance level (R1) at 169.00