GBP/JPY Price Analysis: Brears find an opportunity on the weekly candle


  • GBP/JPY bears are liming up for entry below near tern support structure. 
  • The weekly wick presents a swing trading opportunity. 

The price action the GBP/JPY has corrected a daily impulse and bears are now looking for the fading opportunity. 

The 4-hour time frame offers a critical support structure that, if broken and retested, will offer a high probability trade set up to the downside.

The following is a top-down analysis starting with the monthly chart, as follows:

Monthly chart

The price is coiled into a wedge and there is strong momentum in the monthly bearish candle. 

The wick represents and opportunity 

This wick is simply a daily correction that could be sold into.

Fibonacci retracements are deep enough

The correction is significant enough to move down to a 4-hour time frame and monitor the price action for an entry opportunity. 

4-hour setup

A sell limit can be placed if the price breaks the support stricture. 

On the other hand, looking to the hourly time frame, GBP/JPY Price Analysis: 200-HMA guards immediate upside below 135.00, there is a near term risk that this set up will take some time if the 200-hour moving average gives out. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD under pressure around 1.1850 amid US election concern

EUR/USD is under some pressure around 1.1850 the anti-risk dollar is drawing haven bids on reports of meddling in US elections and fading prospects of an imminent US stimulus deal. US jobless claims are eyed.

EUR/USD News

GBP/USD holds onto gains as Brexit talks restart

GBP/USD is trading well above 1.31, consolidating its gains as intense Brexit talks restart in London, aiming to reach an accord by mid-November. Rising UK coronavirus cases and political uncertainty in the US are keeping the safe-haven dollar bid.

GBP/USD News

Gold off lows, still in the red around $1920 region

Gold traded with a mild negative bias through the early European session, albeit has managed to trim a part of its daily losses to the $1911-10 region.

Gold News

Forex Today: Foreign intervention in US elections weighs on mood, jobless claims, politics eyed

Concerns about foreign intervention in the US elections have weighed on the market mood, allowing the dollar to recover after Wednesday's losses. Intense Brexit talks resume in London, boosting the pound.

Read more

WTI: Buyers lurk around 100-day EMA

WTI bounces off $39.83, the lowest in one week, to battle 50% Fibonacci retracement. EIA inventories recovered from -3.818M prior, -1.021M forecast. The energy benchmark dropped the lowest since October 15 the previous day.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures