Ransquawk

GBPJPY has set new highs this week and touched the resistance zone around 152.90, which didn’t allow bulls to expand further throughout the last year.

As can be seen on the daily chart below, the rebound from resistance has pushed the quotations to yesterday’s lows, where the pair stays so far. If the day closes at a similar level, it may turn out that we will be dealing with an bearish engulfing formation.

In such a scenario, the probability of returning to declines to the lower limit of the range close to 146.90 in which the pair moves from September 2017 will increase. Before this happens, sellers must overcome local support near 149.70.

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Alternatively, the victory of the demand expressed by closing over the area at 152.80 – 153.40 will open the way for increases to the vicinity of 158.70, which would be the target measured by the current range.

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