GBP/JPY Price Analysis: Bears sinking their teeth into what could be a fresh daily impulse
|- GBP/JPY bears are lurking and a downside extension could be on the cards.
- The daily chart's 38.2% Fibo has been breached but bears are committing.
GBP/JPY has been correcting the bearish daily impulse during the course of this week as the yen's dominance subsides in the wake of renewed risk appetite.
However, the atmosphere is fickle and prone to pivot on a dime with the likes of tensions over the prospects of a conflict in the east of Europe/central Asia. Russia is the market's wild card and for that reason, GBP/JPY's downside structure on the charts cannot be ignored.
GBP/JPY daily chart
The daily chart is seeing the price attack the downside with the price correcting into a significant Fibonacci level as being the 38.2% ratio. This is a ratio that is renowned to act as resistance following such aggressive impulses.
GBP/JPY H4 chart
From a 4-hour perspective, the bears will need to clear the horizontal and counter-trendline supports before the price can freely ride lower.
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