GBP/JPY Price Analysis: Weekly W-formation remains in play

GBP/JPY bears engaging in a phase of distribution.
Bears to target the neckline of the weekly W-formation.

Ross J Burland FXStreet

As per the prior analysis, GBP/JPY Price Analysis: Bears move in following bull rally, weekly W-formation eyed, the price is indeed making progress as per the W-formation. The following illustrates the market structure on a weekly time frame and prospects for a setup on the lower time frames:

GBP/JPY prior analysis

In last week's business, it was stated that ''the neckline,'' of the W-formation, '' has a high completion rate for the price to restest the zone, near to 153.40 in this case.''

GBP/JPY weekly chart

As seen, the price is starting to melt and traders can begin to look for bearish market conditions on lower time frames and structures from which engage:

A break below 156.30 would be a welcome outcome for the bears seeking confirmation of the downside bias followed but a break of 155.90:

With that being said, there are prospects of a move into the resistance prior to the downside breakout, if indeed, this is a phase of distribution.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.