GBP/JPY: increases the chances of a decline 9/5/2022

Negative trades dominated the pound’s movements against yen, approaching by a few points from the target published during the previous report at 160.10, to record the lowest at 160.30.

Today’s technical aspect indicates the possibility of continuing the decline, relying on the clear negative signs on the stochastic indicator on the 4-hour time frame and the stability of the intraday trading below 161.70.

Therefore, the bearish bias is most likely today, targeting 160.30, knowing that breaking the mentioned level increases negative pressure on the pair, so we will be waiting for 159.70 next station as long as the price is stable below 161.70.

Rising above 161.70 will postpone the chances of a decline, and we may witness a recovery in the pair’s index to retest 162.30 and 162.70.

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: 160.35	R1: 161.65
S2: 159.70	R2: 162.30
S3: 159.10	R3: 163.00