GBP/JPY: awaits further decline 1/8/2022

GBP/JPY starts its first weekly trading with a solid bearish tendency after it failed to maintain trading above 162.10, recording its lowest level during the early trading of the current session at 161.27.

Technically, the daily trend is still bearish due to stability below the previously broken support-into-resistance, which is now converted to the established level of 162.10, accompanied by the negative pressure of the simple moving averages that support the daily bearish price curve.

Therefore, the bearish scenario is still valid and active today, knowing that breaking 161.20 will extend the pair’s losses so that we will be waiting for 160.40 first target and then 159.30 unless we witness the return of trading stability above 162.10.

Rising again above 162.10 might delay the continuation of the decline, and we will witness a temporary bullish bias that aims to retest 163.20.

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: 160.40	R1: 163.20
S2: 159.20	R2: 165.00
S3: 157.50	R3: 166.00