• GBP/JPY pressured into weekly demand area as yen gathers pace in a risk-off environment.
  • GBP/JPY bears eye a medium-term 147.96 monthly target.

GBP/JPY is under pressure with the yen rallying across the board. The price has dropped into a weekly demand area in a strong daily bearish impulse. The following illustrates the possible scenarios from a market structure perspective for the days and weeks ahead. 

GBP/JPY daily chart

As illustrated, the price is reaching into a critical area of demand in a very strong downside daily candle. Bulls will be attempting to hold up a steam train at this juncture, but the support is fortified with plenty of confluence between the weekly lows and 200 & 21-W simple moving averages converging. 

At this juncture, if there is going to be a correction, it might only be short-lived considering the confluence of the 23.6% ratio and the newly formed counter-trendline resistance near 150 the figure.

Looking at the monthly charts, traders could have the monthly Dec 2019 highs of 147.96 and the confluence of the 38.2% Fibo in their sights for the days ahead:

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