GBP/JPY More Downside Expected

Nenad Kerkez

When other pairs are moving in a low ATR, the GBP/JPY aka “The Dragon” simply doesn’t care about thin holiday liquidity. ATR of last seven days is 115 and that leaves traders with a more room to trade it. Technically we have 2 POC zones. The first POC zone 143.35-143.50 (38.2, bearish order block, ATR level) could reject the price should the pair retrace. Slightly above it is POC2 143.60-85 (H3,50.0, DPP, ATR projected top). Traders should pay attention to possible ejections from the zones towards 143.00 and 142.40.

If we don’t see any retracement, than the momentum break of 142.40 or 4h close below it will aim for 142.16 – projected low and 141.65 if the pairs extends below the projected target.

GBPJPY Hourly Chart

GBPJPY Hourly Chart

Source: admiralmarkets.com

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