GBP/JPY: Bears are dancing on the floor, heading south side

June 20 , 2018

 

Yesterday we have seen that bulls are dominating the market at every nook and corner and it seems like blood bath is going on from bear’s campaign. Last week pair was trading above the moving average but now scenario has changed pair is trading below all the major and minor EMA lines and yesterday a big bearish marabuzo candlestick has been formed which engulfed previous 4-5 daily trading sessions.

 

The 143.21 level can be the last stumble block for bears once it trades and settle below this level we may see further weakness in the pair and it may approach the 140.20 level in short term.

 

 

 

From technical prospective we may observe that a downtrend line has formed on the daily chart and pair is trading and moving below the mentioned line as successively lower lows and lower highs is being formed on the chart, the ways pair is behaving on the pairs it seems like the short term to medium term trend is down. Well Odds are in favor of bears and intraday bias remains bearish on pair as long as 147.50 level remains intact.

 

 

A bearish crossover on MACD indicator is favoring the bears and providing trend reversal signal for the time being and RSI is also providing bearish signal from below 50 territory. The 147.50 level is immediate resistance level followed by 150.00 whereas 142.50 level is strong key support level followed by 140.00 level.

 

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