GBP/JPY Technical Analysis – H4
GBP/JPY failed to hold the 217.70–217.90 support on H4 and has extended the correction toward 217.00, with 216.500 now in focus.
Price failed to bounce from the support zone at 217.70–217.90 yesterday. As a result, the downward correction deepened almost to 217.00, with the risk of a further slide toward 216.500. The latter support can be viewed as critically important for the bulls, since a break below it would complete a large Head-and-Shoulders reversal pattern. Elevated volatility should also be expected today on the back of the FOMC rate decision.
Key Levels:
□ 1. 217.70–217.90 – broken support zone
□ 2. 217.000 – near-term downside target
□ 3. 216.500 – critical support / potential bounce area
□ 4. 216.000 – alternative breakdown level
Primary Scenario:
Decline toward 217.000 and possibly 216.500. An active rebound is possible from either of these levels.
Alternative Scenario:
A drop below 216.000.
Analyst Commentary:
There are no reliable levels at present. It makes sense to stay out of the market today (or at least significantly reduce risk).
Nikolai Krishtopov is a Market Analyst at Investizo with more than 15 years of experience in the financial markets industry and over a decade of trading experience. His areas of focus include forex and crypto markets, technical analysis, intraday trading and market behaviour.