- GBP/JPY is moving into a heavy supply area and focus is on the downside.
- Bears to monitor for bearish conditions in a capitulation of the bulls.
Further to the prior analysis, GBP/JPY Price Analysis: Bears in control towards daily 61.8% Fib target, 141.57, the price indeed melted to the downside, all the way to, in fact, to a low of 141.28.
However, the bulk of the business was done at the targetted area of support before the price rallied back to the upside from this strong demand area.
Looking left, the market can reach the 142.60s in a -0.272% Fibonacci retracement of the daily correction's range which meets prior highs and lows.
The focus, while price enters this supply territory, is on the downside back towards the 140.30 area in what would be a 38.2% Fibonacci retracement of the uninterrupted weekly bullish trend.
Therefore, the 4-hour chart can be now monitored for a downside optimal entry point and bearish conditions:
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