Despite yesterdays 19:30 GMT “flash crash” on the pound quotes (100pips in seconds), GBP/JPY has practically defended its position. Significant support of 143.70 has been maintained and it is worth considering where the price will go further.
Justin Bennett considers two basic scenarios. The first is continuation of declines – but in this case it will be necessary to overcome current base, which will open way towards 141.85. But if bulls do not give up, then we can witness a re-test of 145.70, which now plays a role of resistance. This level in last days showed its technical meaning, as shown on the chart below:
So far, there is no clearer signal to enter, so be careful and watch for further developments.