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  • GBP/JPY is showing signs of exhaustion on the daily time frame.
  • The bears will be keen on price action below the trendline for a test and close below the current support structure. 

Following a Doji candle on the daily time frame as the price heads towards a long-term dynamic resistance line, bears are setting their sights on a weekly downside target and a confluence with the weekly 21 moving average. 

On the other hand, if bulls can hold above the current support structure, a subsequent rally could occur from the dynamic support line for a look at bearish commitments at the counter trendline from a weekly basis. 

Monthly chart

Weekly chart

While price is below the dynamic resistance line, there is scope for a break and retest of the current support structure before a follow-through to hunt down the weekly support structure.  

It is essentially a matter of bullish above or bearish below with high volume node targets either side.

The point of control since the late Jan 2018 bearish channel’s formation is located at 145.05, a keen target for the bulls.

Daily charts, scenario 1

Scenario 2

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