- The GBP / JPY shows signs of exhaustion over the daily period.
- The bears will appreciate the price action below the trendline for a test and close below the current support structure.
After a Doji candle on the daily period as price moves towards a long term dynamic resistance line, bears look to a weekly downside target and confluence with the 21 weekly moving average.
On the flip side, if the bulls can hold above the current support structure, a subsequent rally could occur from the dynamic support line for a look at bearish commitments to the counter trendline. – trend on a weekly basis.
Although the price is below the dynamic resistance line, it is possible to pause and retest the current support structure before a follow-up to track down the weekly support structure.
This is essentially a bullish above or bearish below issue with high volume node targets on either side.
The checkpoint since the formation of the bearish channel in late January 2018 stands at 145.05, a prime target for the bulls.