GBP/JPY: Short Setup as Resistance Holds Firm

Technical Analysis & Setup Rationale

Looking at GBP/JPY, the market is currently trading around 189.37, firmly within its recent sideways trend. While the 24h change shows a slight positive move of 0.14%, my analysis suggests a short opportunity is developing. The day range has seen highs near 189.77, which aligns precisely with a critical resistance level identified on my charts. This level has proven difficult for buyers to breach consistently.
My entry target for a swing short is set at 189.5. This strategic entry allows for a retest of the 189.77 resistance area, confirming rejection before committing to the downside. The Stop Loss is placed at 190.1, just above the 189.77 resistance and the psychological 190 mark. This provides a clear invalidation point for the setup. For the Take Profit, I'm targeting 188.2. This level is strategically placed below the initial support at 188.97, aiming for a deeper retracement towards previous demand zones. The confluence of price action showing rejection at 1