Under key resistance 147.50
There is a very difficult task ahead of market bulls. GBPJPY has grown almost vertically since mid-April, gaining from 135.60 to 147.28 actually. There was no correction during this period, which affects the bears attention. Resistance 147.50 is at the highest level on which GBPJPY has been trading for almost a year. It’s unlikely to break this level easily. What we can expect is that there will be at least consolidation or correction in its area, after which this pair will be able to return to growth.
Scenarios for GBPJPY
Consolidation or flat correction under resistance 147.50, followed by another test of indicated resistance will be a confirmation of the strength of the bulls. The later successful breakout of this resistance will be a signal to change the trend in long term. Alternatively, if the key resistance is reflected and the bears take over GBPJPY then support at 136.00 will be back in game.