GBP/JPY Price Analysis: Bulls eye the 4-hour resistance

FX
  • GBP/JPY is drifting higher within a strong bullish longer-term trend.
  • The near-term charts point to a period of consolidation and a move in on 4-hour resistance. 

The market is mixed across the time frames from a structural point of view, but the upside bias is compelling on the longer-term outlook.

The nearer-term picture sees the price testing key levels of market structure as illustrated in the following 4 and 1-hour charts.

Weekly chart

The outlook is bullish from a longer-term perspective. 

4-hour chart

An upside continuation would be expected to complete the W formation and for a re-test of the resistance. 

1-hour chart

We can expect to see a drift lower to test the 38.2% Fibonacci confluence with the prior highs looking left.

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