For GBP JPY, due to Brexit fears, we've seen a huge amount of bearish momentum for the Pound yesterday. With previous day's bearish momentum in mind, I see the pound retracing to test 142.83 breakout for the pair. Weekly, Daily, and 4 hour candles suggest a push lower to the next resistance level. I would expect an impulsive rally for retest to then gravitate toward filling orders within the 141.20 Wick levels for the pair. Possible T1 would be 140.58 within the next Zone. I'll be looking for more confirms during the London session today to strengthen my bearish bias.
Nice idea on GBPJPY and there may be bearish bias as you have you have identified. For our set up, we have identified the key resistance and support levels for the short term. The first resistance that we have identified is at 142.84 (100% Fibonacci extension, 23.6% & 38.2% Fibonacci retracement, horizontal overlap resistance), which falls within your resistance zone. Price is approaching its resistance where a corresponding reversal could occur. If a reversal does occur, we may look at the 141.63 support (horizontal swing low support), just above your support zone.
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Fistbumped
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@ICmarkets, I absolutely agree with your idea. From the markets today, it looks like Bearish sentiment won the day! Thank you for your insight on my chart.
Please have a look at our idea and share with us what you think.