GBP/JPY: facing negative pressure 30/8/2022

Negative trading continued to dominate the movements of the pound sterling against the Japanese yen, after it hit the resistance level of 162.65, which forced it to settle negatively.

On the technical side, we are inclined to negativity, relying on the clear negativity signs on the stochastic indicator. with because the bullish momentum has fallen in the short time frame.

From here, and with the stability of daily trading below 162.65, the bearish scenario remains valid and effective, targeting 162.00 first target, knowing that breaking the mentioned level will extend the pair’s losses, so we are waiting for a visit to 161.45.

The price consolidation above 162.75 normalizes the proposed scenario completely, leading the pair to recover towards 163.35.

Note: The US “Consumer Confidence” index is scheduled to be released later in today’s session and it has an important impact and we may witness price fluctuations.

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: 161.45	R1: 162.75
S2: 160.75	R2: 163.35
S3: 160.15	R3: 164.00