GBP/JPY: is witnessing a bearish corrective slope 5/5/2022

Negative movements dominated the British pound against its Japanese counterpart after hitting the resistance level of 163.60, which forced the pair to trade with clear negativity again, to witness the stability of the current movement around the lowest level during early trading at 162.10.

On the technical side, today, we are inclined towards the bearish corrective bias based on stochastic gaining more bearish momentum and the negative pressure of the 50-day moving average.

With the price pivoting below 163.40, the bearish corrective slope is the most preferred, targeting 161.80 first target, knowing that breaking it extends the pair’s gains, opening the door towards 161.20 as long as the price is stable below 163.40.

The return of stability and consolidation above 163.40 will postpone the chances of a decline, and we may witness a temporary recovery for the pair, with an initial target of 164.20.

Note: the level of risk may be 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: 161.80	R1: 163.40
S2: 161.20	R2: 164.20
S3: 160.40	R3: 164.90