The pair recently broke above its long-term resistance line (see below). But in doing so, it traced out a small double top pattern. That’s very bearish and implies the breakout is basically a bull trap -- all the bulls who chased this breakout are likely to be severely punished when the price suddenly goes the other way.
On H4 price is forming a rounding bottom, a bullish pattern, which suggest we will see a short lived bullish move up to the neckline of a Double Top before the price move (much) lower again.
This is a very ominous looking double top which will ultimately lead to lower prices overtime. And that’s why I am very bearish with GBPJPY right now.
I would look to sell any rallies going forward.
On H4 price is forming a rounding bottom, a bullish pattern, which suggest we will see a short lived bullish move up to the neckline of a Double Top before the price move (much) lower again.
This is a very ominous looking double top which will ultimately lead to lower prices overtime. And that’s why I am very bearish with GBPJPY right now.
I would look to sell any rallies going forward.