GBP/JPY Price Analysis: Bears giving ground to the bulls at key support

• GBP/JPY has scope for a move higher so long as the bulls commit at 170.50.
• A break below 170.00 opens risks all the way to 169.00 for the day ahead. 

GBP/JPY has been breaking higher this week with eyes on the 174.00s. However, for the near term, the bulls need to hold on as they take on the bears on the backside fo the trendline.  The bears are looking to clean up the length that is vulnerable below 170.85 with 168.80 eyed. The following illustrates the market structures and bias on the weekly, daily and hourly charts.

GBP/JPY weekly chart

There is room for a move higher into weekly resistance while climbing the supporting trendline while the bullish W-formation and neckline remain intact. 

GBP/JPY daily chart

The daily chart shows that the price is hugging the trend but the price is decelerating on the bid which could lead to a cascade of drops at key structure levels.

GBP/JPY hourly chart

This is where the near-term opportunity might evolve. The price is reaching higher, but should we have seen a break of structure to the downside but the bears have failed to stay on the front side of the trend. There is scope for a move higher so long as the bulls commit at 170.50. A break below 170.00 opens risks all the way to 169.00 for the day ahead.