GBPJPY is in a downtrend and after a sharp drop, price has started a correction phase in the form of an ascending parallel channel.
Currently, price has been rejected from the resistance level at 151.500 and also from the channel’s upper band and it is still bouncing in the channel.
We should wait for the channel’s breakout:
1. If the lower side of the channel broken to the downside and price closed a bearish candle below the channel, wait for the next confirmation candle or try to find any bearish patterns in lower time frames to enter short.
2. If channel broken out to the upside and closed above it, we can expect more rise around the next resistance level at 151.800
I personally think GBPJPY will continue the downtrend after retrace.
Which side are you on? Feel free to share your ideas in the comments.