GBP/JPY: awaits clearer signal 20/5/2022

Divergent movements dominated the trading of the British pound against its Japanese counterpart, to fail to achieve the scenario of retesting the resistance published during the previous analysis, and as we explained during the last analysis that the decline below 158.50 will immediately stop the expected bullish trend and put the price under negative pressure to target 157.85, recording its lowest level at 157.88.

Technically, the 50-day moving average is putting pressure on the price from above, in contradiction with the positive signs that started appearing on the stochastic indicator.

We prefer to monitor the pair’s price behavior from below 158.00 and above at 160.00. The decline below the support opens the door to visit 157.00, while crossing upwards to the 160.00 area is a positive factor targeting 160.90. Note: the level of risk is high.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 158.00	R1: 160.00
S2: 156.90	R2: 160.90
S3: 155.90	R3: 162.00