GBP/JPY has broken a key trend line, which points to lower prices in the coming weeks
|The GBPJPY broke a major trend line from the post BREXIT lows in October 2016, all the way to the current price. This is a critical break, not only because we have tested this level on 4 different occasions. But also since we are now testing the 200DMA and have broken the 61.8% retracement of the last move higher (June lows to July highs).
One other major issue for this pair is that we had developed a longer term triangle, broke higher, but have now created a "false breakout" which likely trapped some longs over the last few weeks.
A test of the 140 level or below seems quite likely, but the market should be focused on the daily RSI that is close to dipping into oversold territory.
Blake Morrow
Forex Analytix
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.