GBP/JPY Trade Positioning Update

I mentioned earlier (GBP/JPY – Short Position Bias &Β Weekly Analysis)Β that GBP/JPY is likely to fall further given a rejection of the upper bound of the descending triangle.

As of now, we can see that price isΒ not accepting levels above 140 well.

Zooming in on the Hourly chart, we can see a Double Top formation much clearer, but the rectangular box indicates a strong demand zone, supported by multiple candles with long lower wicks.

Although price has clearly rejected any immediate upside momentum, neither does it have the bravado to challenge the demand zone, thereby following through on the double top.

Price is likely to stay this way in a range-bound, see-sawing fashion – unless for some reason or another the market makes up its mind to take on 140 again or race down to Support Level 1.

With the BOJ due to release its interest rate decision in slightly less than two days on Thursday late morning/early afternoon, do exercise caution when trading the JPY pairs.