- GBP/JPY bulls stepping in and the Fibo levels align with prior structures for which to target.
- Bears will be seeling a discount to target a lower low in days to come.
GBP/JPY has been strongly offered at the start of the year and the following illustrates the daily chart's market structure and prospects of a downside continuation.
However, the price is now stalling on the downside with a decoration that would be expected to evolve into a potentially significant correction
GBP/JPY daily chart
The bulls can keep the Fibonacci retracements in mind whereby the 38.2% aligns with the 4-hour consolidative highs near 154.50, the 50% mean reversion with the 3rd Jan highs near 154.50 and the 61.8% near 155.50.
Any of these areas could be an attractive area for bears to reengage at a discount to target daily extensions to the downside with 152.50 in mind.
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