During the last analysis of the GBPJPY, the pair was in the process of breaking the key support in the form of an upward trend line running from last year’s minimum.
The exchange rate then slid to key support at the 145.00 level, which was the first target for declines. As can be seen in the daily chart below, this support has even been broken, however, the quotes returned over it in the next few days.
The upward movement brought this week the price to the key resistance – the trend line discussed earlier and the horizontal area close to 147.50. Everything depends now on the result of this test.
If it turns out to be positive, which I personally count on, the quotes may go back to 145.00 and then towards the minima at 143.18. Alternatively, a return at the closing of the session over 147.50 and a diagonal resistance line will invalidate the bearish attitude on this pair. In addition, another resistance will be exponed near the round level of 150.00.