Bears are back on GBPJPY
More than for two months was continued a bullish trend on GBPJPY. Trend ended on December 15, and from that day supply gradually erases the previous upsurge. Substantial support has been broken on January 9 and it was on level of 142.00. Further support was broken after another two days.
Breaking the next support level of 139.00 happened today and was made in a great style. On graph appeared a large size bear market gap, after which supply quickly managed to test the next support. This time we tested the level of 136.50.
The scenario for the next sessions
At this point we cannot see on GBPJPY any strength of demand. Therefore, the most likely scenario for the next few days is to break the 136.50 support and move toward the next two support levels: 133.40, 129.70.
It’s worth looking on the daily interval chart. It is clear to see that the current declines are consistent with previously prevailing downward trend. While the earlier 2-month growth for the time being should be seen merely as a correction.
