GBPJPY ANALYSIS

Hello traders, I hope your weekend was okay. Into the new week in the markets, GBPJPY price rallied to a BOS level on H1 & H4 at 164.903 & 163.876 where price broke as it dropped from the major supply level on H4 and the daily chart at 168.589 & 167.699. Took sell entries during London session at 165.000 with SL at 165.600. Setup taken is a drop base drop, a continuation setup. Price formed a rejection wick on H4, candle close inside BOS followed by a strong bearish engulfing candle showing bearish momentum. 

Took a scale-in sell entry at 164.364 with SL at 164.720. My 1st target is at 160.000 although I anticipate a continuation of the drop to demand on the daily chart at 158.131 & 156.351.

Price gained momentum late in the session towards NY open having dropped 230 pips to 162.732 and still showed more bearish potential as we headed into NY. Price continued with the downtrend during NYSE as price dropped to 161.820, a 320 pips drop and still looking strongly bearish as I anticipate price to fill the major range back to the daily demand level at 158.258 & 156.351 as this demand level is the origin of the previous rally to the major supply level on the daily chart at 168.589 & 167.699.