GBPJPY Weekly Technical Outlook
On the monthly time frame, the GBPJPY price action broke down the 142.660 horizontal support area in May 2019. In fact, the bearish candlestick printed on the monthly time frame also broke down the next horizontal support around the 139.900 round number. Any bearish follow through this month will likely expose the 130.430 horizontal handle. But the 139.966 monthly pivot represents a horizontal resistance that may be retested before a bearish continuation.
Price action printed a relatively small bullish candlestick around the 136.500 horizontal support last week after making a bearish drive for four weeks. Should bulls manage further northward move, the horizontal resistance around the 139.960 monthly pivot is likely to be a barrier to a bullish drive. A break below the 136.500 level may give confidence to bears to drive price action further southwards.
On the daily time frame, the last five trading sessions printed primarily bullish candlesticks after a wave of bearish price action over several days. However, the bullish candlesticks were relatively miniature compared to the preceding bearish prints. Thus, the bullish move is corrective in nature. We may see bulls take price action to a value area, such as the immediate horizontal resistance around the 139.900 area before a southward turnaround. I am bearish GBPJPY.
I may be wrong. Trade safe and prosper.