GBP/JPY Has Reached a Strong Resistance on the Daily Time Frame and I Think It Will Start Falling

I haven’t examined this pair in detail before. Today, however, there is a pretty strong signal and I think it’s worth paying attention to it.

The pair has reached the strong resistance at 160.50 – 161.50 and has been moving between these levels all day long, forming a very telling doji candlestick on the daily time frame.

The resistance level itself is visualized by the upper band of Bollinger Bands and the green line of the (EMA)89 indicator on the same time frame.

On the 4-hour time frame there is an already closed bearish hammer candlestick which has formed entirely below the resistance at 161.50.

Of course we have to wait for the daily candlestick to close as well, which will happen in a few hours, before we can do anything with any certainty. If the daily candlestick closes as it is now – as a doji below the resistance level – in my opinion this will be a strong signal that a move to the downside is about to begin and the pair could reach at least 157.00.