GBP/JPY Price has break H4 trendline. So as expected price has rejected the H4 Resistance and made a huge drop. As you can see there is a bearish engulfing pattern and dropped till the daily resistance become support (RBS) zone. Currently GBP/JPY price is at h4 support zone.
There is a high possibility for the price fly back and test the H4 support become resistance (SBR) zone because the price has rejected daily resistance become support (RBS) zone and closed in the H4 support zone so we may expect a small retracement. If the price break the H4 support become resistance (SBR) zone, there is a high possibility for the price to test the high-risk area or the h4 resistance zone because there is a bearish engulfing so usually price will retrace the engulfing zone before continuing to drop.
However, if the price continues to drop from its current position there is a high chance to retest the daily resistance become support (RBS) zone. If the price breaks the zone, we can expect another drop till the H4 rally base rally zone, otherwise, if the price rejects the daily resistance become support zone maybe the price will retest the H4 Support zone such as shown in the picture above before continuing to drop.
Check the chart pattern in tradingview.
Only GBP and JPY high-impact news affect the market. Usually, there will be a lot of news for both GBP and JPY. Just keep in mind that, if the JPY currency strength is high due to the news so there is a high possibility for the price to drop, in case GBP currency strength is high due to the news so there is a high possibility for the GBP/JPY price to shoot up. So be aware of the news because fundamentals also can give a huge impact on price actions.
