- GBP/JPY is showing signs of exhaustion on the daily time frame.
- The bears will be keen on price action below the trendline for a test and close below the current support structure.
Following a Doji candle on the daily time frame as the price heads towards a long-term dynamic resistance line, bears are setting their sights on a weekly downside target and a confluence with the weekly 21 moving average.
On the other hand, if bulls can hold above the current support structure, a subsequent rally could occur from the dynamic support line for a look at bearish commitments at the counter trendline from a weekly basis.
Monthly chart
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Weekly chart
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While price is below the dynamic resistance line, there is scope for a break and retest of the current support structure before a follow-through to hunt down the weekly support structure.
It is essentially a matter of bullish above or bearish below with high volume node targets either side.
The point of control since the late Jan 2018 bearish channel’s formation is located at 145.05, a keen target for the bulls.
Daily charts, scenario 1
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Scenario 2
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