GBPJPY is currently showing signs of a pullback within a larger descending channel on the 4H chartPrice has bounced from the lower boundary and is now approaching a critical resistance zone around 195.00 which aligns with the upper trendline of the channel This area has previously acted as a strong rejection point...
What to watch
A retest of 195.00 could complete the pullback
If price fails to break above and forms rejection signals we could see a bearish continuation toward the 190.00 support or even lower near 186.00 The overall structure still favors the bears unless there’s a clean breakout above the descending channel
This could present a great opportunity for trend-following traders waiting for a deeper correction before a possible sell-off resumes...
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