The GBPJPY price action has just recently buckled below a support level – which we expected to hold. There was a bullish Inside Day at this level which we did anticipate would break out higher, but the trade setup never triggered. Now because the market is trading under the resistance level and on the negative side of the mean value, we are sellers in this market.
Last session, that support level was tested as resistance and held. The rejection of the resistance level forced the daily candle to close lower than the open price creating a small bearish rejection candle swing trade setup. If the market breaks the rejection candle lows then it’s likely we will see much lower prices from this pair.