GBP/JPY Price Analysis: Shorts are vulnerable to a squeeze near daily support
|- GBP/JPY bulls have stepped in on the lower time frames.
- Bulls eye a daily M-formation neckline.
GBP/JPY is down some 0.9% and has fallen from a high of 181.51 to a low of 179.46 so far. The daily chart shows the price breaking the support structure near 179.90 which puts the emphasis on the downside, medium term, but potentially supports a meanwhile bullish bias into the bearish impulse. The M-formation is a reversion pattern that would be expected to draw in the price towards the neckline.
GBP/JPY daily chart
GBP/JPY H4 chart
GBP/JPY 4-hour chart shows a series of bearish closes with little signs of a deceleration in the offer, so far,
GBP/JPY H1 charts
GBP/JPY hourly charts are showing that the price is decelerating on the offer and has moved into a 38.2% Fibonacci retracement of the prior hourly bearish impulse. We have two trendline resistances eyed with prospects of a move towards a 78.6% Fibonacci area near 180.50.
Meanwhile, a break of resistance opens risk to the neckline of the daily M-formation.
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.