FxWirePro: GBP/JPY done with price recoveries, bulls exhausted as whipsaw on moving averages - dips likely to resume

On daily price patterns, after today's rejection of resistance at around 166.087 it began evidencing sharp dips to continue with the ongoing downtrend. Any price upswings were not convincing as there was no proper volumes conformity to those upswings, whereas the reasonable volumes build ups on every price dips which means that more bearish interest in the market.

More considerably, we've seen intraday whipsaws on moving average curves which is a contradictory to the previous upswings, bears have sent the early alarms to the exhausted bulls.

These price declines were also coupled with both leading and lagging indicators to converge these slumps. We reckon that after last week's break below the crucial supports at 164.304 levels on closing basis has created the more weakness in this break.

While both momentum oscillators and lagging indicators are correspondingly converging to the existing declining rallies. (both RSI and stochastic curves have reached oversold territories but no trace of price recoveries on weekly graphs).

Slow stochastic has almost approached oversold region and still maintaining %D crossover, while same is that case on RSI (14) as it shows converging these dips to intensify selling momentum even at oversold territory.

So far, we see no harm for bears with medium term trade setups as lagging indicators are pretty much the same as leading indicators, MACD and 21DMA has still been a sell both on weekly and monthly graphs.

The prices have slid well below 21DMA just a month ago on monthly chart that has created more room for ongoing bearish trend.  21DMA crossover above 7DMA doesn't even allow short term bullish opportunities.

Thereby, for now if it does not manage to hold onto 164.304 levels, then we still maintain the targets at 160.207 and even at 156.480 levels are pretty much possibility in the days to come.