Movement between down trend line and support 136.70
There is little room left to continue GBPJPY movement between the downward trend line and the support of 136.70. At first glance, the price has formed a rectangular triangle, but note that the level 136.70 has been tested so far only once. Nevertheless, each time when trying to get closer to 136.70 appears demand and similarly with the downtrend line – the supply is quickly reacting.
Low volatility and waiting for GBPJPY to break out
Clearly, the volatility on GBPJPY has decreased. This means that at the moment of break-out, traffic with significantly higher ATR should occur in the direction of breaking.
Breaking out of the current consolidation can happen even this week, and the latest will this happen in the next. This will become due to lack of space to continue the movement. If we break the support 136.70 GBPJPY will move towards the next strong support 125.40. If the downward trend line is broken then target for demand will be 147.90.