GBP/JPY: may witness a bearish slope 23/8/2022

The British pound fell against the Japanese yen to reverse yesterday’s expected daily bullish trend. It touched the stop-loss order published during the last analysis at 161.40, recording its lowest level at 161.16.

Technically, the pair’s current moves are witnessing a return to pivot below the resistance level of the psychological barrier 162.00. We also found signs of negativity appearing on the stochastic indicator and losing the bullish momentum.

Therefore, there is a possibility of a bearish bias in the coming hours, targeting 161.00, knowing that breaking the mentioned level constitutes a strong negative pressure factor that forces the pair to visit 160.40.

Above 162.00, and most importantly 162.35 cancel the activation of the suggested scenario and leads the pair to visit 163.10, an initial target.

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: 161.00	R1: 162.35
S2: 160.40	R2: 163.15
S3: 159.60	R3: 163.75