GBPJPY Bearish Technical View.
GBPJPY Structurally, is very similar approach to that of GBPUSD just analysed we can see a near identical move. This pair on the higher Daily timeframe saw massive sell off during March establishing lows at the 124.00 level. Subsequently, we then saw price retrace to the upside in what can be described as a relief rally. As such we then saw price action stabilise off the key area identified at the 135.00-50 level or at the 78.6 point on the Fibonacci retracement. Daily candle closures at this time pinpointed numerous closures at or around this level illustrating further of the bullish or uptrend exhaustion on the retracement. Fundamentally, now we are looking for the continuation to the downside following the break of the weekly support at the 133.686 level initially and now the break and retest of the 132.00 level this week.
For the next move, we wan't to see fresh lower lows forming in the downtrend with the next near term descending target being set in the 129.50 with additional downside targets set at the low's at 124.00 level and -0.276 fibonacci extension anchor point around the 120.00. In line with moves lower I will also be looking for increased strength and monetary flows into the safe havens formally known as the Dollar,Yen & potentially CHF currencies where markets turn to a risk off sentiment following the initial moves lower in the stock markets as the bubble pops in the April relief rally.
GBPJPY Structurally, is very similar approach to that of GBPUSD just analysed we can see a near identical move. This pair on the higher Daily timeframe saw massive sell off during March establishing lows at the 124.00 level. Subsequently, we then saw price retrace to the upside in what can be described as a relief rally. As such we then saw price action stabilise off the key area identified at the 135.00-50 level or at the 78.6 point on the Fibonacci retracement. Daily candle closures at this time pinpointed numerous closures at or around this level illustrating further of the bullish or uptrend exhaustion on the retracement. Fundamentally, now we are looking for the continuation to the downside following the break of the weekly support at the 133.686 level initially and now the break and retest of the 132.00 level this week.
For the next move, we wan't to see fresh lower lows forming in the downtrend with the next near term descending target being set in the 129.50 with additional downside targets set at the low's at 124.00 level and -0.276 fibonacci extension anchor point around the 120.00. In line with moves lower I will also be looking for increased strength and monetary flows into the safe havens formally known as the Dollar,Yen & potentially CHF currencies where markets turn to a risk off sentiment following the initial moves lower in the stock markets as the bubble pops in the April relief rally.