After seeing GBP/JPY make a large move over the past 2 weeks to the strong 1D resistance line, I feel a retrace is necessary for price to break the resistance and continue towards the 145.00 level. From 138.1 - 143.25 sellers have kicked it and stop price moving above.
Concept 1: Sellers stop price passing the resistance and we retrace to 132.5 (61.8% Fib from monthly low to resistance) Before buyers kick back in and move the market back up.
Concept 2: Price continues to follow the descending triangle and eventually drops through support or bounces from support to try resistance again till one wins!
We have little data from the UK next week and a lot from JPY, If the strength is still with JPY currency these moves will be easily achievable.
Concept 1: Sellers stop price passing the resistance and we retrace to 132.5 (61.8% Fib from monthly low to resistance) Before buyers kick back in and move the market back up.
Concept 2: Price continues to follow the descending triangle and eventually drops through support or bounces from support to try resistance again till one wins!
We have little data from the UK next week and a lot from JPY, If the strength is still with JPY currency these moves will be easily achievable.
