GBPJPY

🇬🇧🇯🇵 #GBPJPY Analysis
🕓 Time Frame: 4-hour Chart/Close
🔽 Status: Bearish
📆 30/07/2024

Current Market Situation:
GBPJPY is poised to continue its bearish trend. The price has temporarily halted around the 197.00 zone, taking a short respite before potentially falling further. The market is anticipating an interest rate hike in Japan, which adds to the bearish sentiment.

Key Observations:
Market Structure: The price has broken the bullish market structure and confirmed a bearish one, indicating a shift in the global trend.
Rising Volatility: Japanese markets are experiencing increased volatility with the Bank of Japan expected to discuss a rate hike this week and consider a plan to halve government bond purchases.
Trader Behavior: Traders are reducing their short positions on the yen, signaling confidence in the yen's strengthening.

Technical Outlook:
Key Level: The focus is on the 197.2 level, which divides the market into two zones. Price consolidation below this level could signal the start of a further bearish rally.

Resistance Levels:
197.2
198.75
Support Levels:
195.8
193.8
191.8

Conclusion:
Both fundamentally and technically, indicators point towards a further decline in GBPJPY. The actions of the Bank of Japan, particularly the potential rate hike and reduction in government bond purchases, are likely to have a significant impact on the currency pair.