GBP/JPY Price Analysis: Bears charge into significant demand area, 150.00 resistance eyed
|- GBP/JPY pressured into weekly demand area as yen gathers pace in a risk-off environment.
- GBP/JPY bears eye a medium-term 147.96 monthly target.
GBP/JPY is under pressure with the yen rallying across the board. The price has dropped into a weekly demand area in a strong daily bearish impulse. The following illustrates the possible scenarios from a market structure perspective for the days and weeks ahead.
GBP/JPY daily chart
As illustrated, the price is reaching into a critical area of demand in a very strong downside daily candle. Bulls will be attempting to hold up a steam train at this juncture, but the support is fortified with plenty of confluence between the weekly lows and 200 & 21-W simple moving averages converging.
At this juncture, if there is going to be a correction, it might only be short-lived considering the confluence of the 23.6% ratio and the newly formed counter-trendline resistance near 150 the figure.
Looking at the monthly charts, traders could have the monthly Dec 2019 highs of 147.96 and the confluence of the 38.2% Fibo in their sights for the days ahead:
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