GBPJPY was unable to break above the 174.70 level of strong upside resistance after the recent strong bounce from 150
Only a confirmed break above 174.70 again will lead to an extension higher but the probability for this is not so high as it is reaching the confluence of a strong resistance.
This short-term confirmed break below 172.4 after the resistance rejection could lead to an extension lower to 166.
This could be a medium-term low-risk short trade, and we will not search for long trade entries at this point.
You can take the short trade with the stop loss just above 175 as we see a higher probability for this swing reversal lower to continue. By placing this trade your RR ratio is around 2. In this case, if you are stopped you can reverse your trade to a long trade. The first target is 166 but may go beyond that to 159 and lower.
