GBP JPY - LOOKING TO CONTINUE NEW DOWNTTREND
With most of the major Currency Pairs already starting new trends, the GBP JPY also looks to be starting one of its own after breaking its major Inner Uprtrend Line. Having done this, the pair has hit its 500 - Pip Weekly Range and has been moving sideways as is customary at this area. If this movement eventually takes the form of a Range pattern and leads to a bearish breakout, then further gains are expected for the Japanese Yen.
We can see the broken Inner Uptrend Line in the chart below that has started a new Downtrend. If this new direction continues, then the Outer Uptrend Lines would be the next major targets.
The sideways movement now taking place could lead to the formation of a Range setup if the 2nd Resistance point is formed (r2). A break of Support with a strong Bearish Candle would then be needed to confirm the continuation of this Downtrend.
Looking ahead, the next price target to be hit would be the 2nd Weekly Range. This would lie around the 167.00 area and could be reached within 10 days from this breakout.
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