GBPJPY Eyes Reversal from Resistance – Bears Geting ReadyHey Traders,
OANDA:GBPJPY is currently testing a key resistance zone around 195.75 - 196.35, showing early signs of rejection. The pair recently completed a bullish impulse, but bearish pressure is creeping in as price forms a potential lower high-suggesting a possible shift in structure.
Current Market Conditions:
Price is reacting to a historically significant resistance near 196.35, which has capped previous rallies.
Bearish engulfing candle near this zone signals exhaustion of bullish momentum.
A break below 195.00 would confirm a short-term trend reversal, with room for a deeper pullback.
Next major support lies at 193.51, which aligns with previous demand and consolidation zones.
Fundamental Analysis/Outlook:
Today’s UK labor market data showed slowing wage growth, reducing pressure on the Bank of England to maintain a hawkish stance. Meanwhile, JPY strength is creeping in as market participants remain cautious ahead of upcoming BoJ announcements. This divergence in monetary policy outlooks may fuel further downside in GBPJPY.
Targets:
TP1: 194.79
TP2: 193.51
TP3 (extended): 192.20 (if risk sentiment sharply worsens)
Risk Management:
Stop-Loss: Above 196.35 to invalidate bearish bias.
Maintain proper position sizing.
Wait for confirmation of a lower high or trendline break before aggressive entry.
Technical Outlook:
Potential bearish structure forming.
Resistance held multiple times between 195.75 – 196.35.
Rejection candles and a break of recent support would favor sellers.
Conclusion:
If price confirms rejection at current levels, bears could take control toward 193.50 support. Keep an eye on momentum shifts and key price action signals for confirmation.
Sign-off:
"Markets move on conviction, not hope. Trade what you see, not what you feel."
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