GBP/JPY: getting negative signals 18/5/2022

Positive trading dominated the movements of the pound sterling against its Japanese counterpart, as we expected, touching the official price target during the previous analysis at 161.00, recording the highest level of 161.85.

On the technical side today, despite the technical factors that increase the possibility of continuing the rise, we believe there is a possibility of a bearish bias in the coming hours due to the negative features that started appearing on the stochastic on the 4-hour time frame.

We aim to retest the 159.70 and 159.20 levels, knowing that the breach of 161.20 will stop the idea of ​​retesting and lead the pair to complete the bullish path with an initial target of 162.20.

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: 159.15	R1: 162.20
S2: 157.45	R2: 163.55
S3: 156.10	R3: 165.25