GBP/JPY Price Analysis: Bears seeking test of lower bounds, bulls wait
|- GBP/JPY is trapped in recent ranges and traders seek a breakout, preferably to the upside.
- Bears are in control for the meanwhile, testing below trendline support on the daily sticks.
GBP/JPY is offering a mixed outlook on the charts with both the monthly and weekly trading in a clear upside bias while the daily is trapped between support and resistance.
The following is a top-down analysis that swing traders can use to gauge where the next opportunity might show-up.
Monthly chart
The monthly chart is in the process of a bullish extension from the monthly W-formation's nose.
Weekly chart
The weekly chart is retesting the nose of the W-formation and price could be subject to a move to the upside from here, in synch with the monthly formation.
Daily chart
From a daily perspective, the price is trapped between support and resistance.
There is currently a bearish bias given the break out below the trend line support and the formation of the head and shoulders formation.
However, the time frames are conflicting and swing traders may wish to sit this one out for the time being while the price is trading between the support and resistance.
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