- GBP/JPY bears seeking a significant correction on the longer-term time frames.
- Bears to target a daily confluence level of the support structure.
GBP/JPY is trapped in an hourly channel, with a focus on the downside from a longer-term perspective.
The following illustrates the market structure across the time lines and arrives at a bearish conclusion.
The price is in need of a correction according to four consecutive months of higher closes.
The daily chart shows a confluence of the 21 simple moving average and the 38.2% Fibonacci retracement level.
There is support to clear first as the price is resisted at a confluence structure.
The hourly conditions are choppy in a sideways channel, but again, the support needs to give following a break of the 21-SMA.