What’s Flowing: GBP/JPY Analysis

Market Overview:

• Trend: GBP/JPY continues its bearish trajectory, respecting the EMA resistance and forming lower highs and lows on the 4-hour chart.

• Current Price: The pair is consolidating around 190.14, following a significant move down from the 193.30 resistance area.

Key Levels:

• Resistance:
• Immediate: 190.90 - 192.30
• Strong: 193.88
• Support:
• Immediate: 188.13
• Deeper: 186.05

Insights:

• Bearish Continuation: The rejection from the 192.30 zone and the sustained trade below the EMA cloud signal strong seller dominance.

• Economic Events: Upcoming BOJ and BOE commentary could add volatility to the pair. Stay cautious of intraday swings as traders position for the releases.

Trade Setup:

• Short Bias:
• Entry: Re-test of 190.90.
• Stop Loss: Above 192.30.
• Targets: Initial at 188.13, extended to 186.05.

Summary:

GBP/JPY is heavily influenced by monetary policy expectations and recent dovish BOE signals. The downside remains favorable, with sellers likely eyeing the 186.05 zone as the next major target. Keep an eye on news flows and economic data releases for potential disruptions.