GBPJPY on the H4 timeframe is showing signs of weakness after being rejected at the descending trendline. The price remains below the Ichimoku cloud and has yet to reclaim the resistance area around 214.00 – 214.30, indicating that the current rebound lacks confirmation.
Notably, after the previous sharp decline, the price only recovered weakly and moved sideways below resistance. This is often the market preparing for another decline if buyers cannot create a strong closing candle above the resistance zone.
Regarding news, the JPY has the advantage due to expectations that the BOJ may move closer to raising interest rates, while the market remains wary of the possibility of Japanese intervention if the yen weakens too strongly. This puts pressure on cross pairs like GBPJPY.
Reference strategy:
SELL around 214.00 – 214.30 if there is a rejection candle.
SL: above 214.70
TP: 213.20 – 212.80