- GBP/JPY bulls stepping in to target a significant correction.
- Bulls eye the 61.8% Fibos across the time frames.
GBP/JPY has left a weekly M-formation which is a bullish reversion pattern. If the price holds at this support area, then it would be expected to target the 61.8% Fibonacci where it meets the neckline lows of the formation.
GBP/JPY weekly chart
However, given the topping of the 2020 rally, should the neckline hold, then a downside continuation could be sparked for a run to 146.00.
GBP/JPY daily chart
The daily chart shows that the price will first need to get beyond the order block between 150.69 and 151.91 first.
This puts the daily 61.8% ratio, located at 151.06 onto the radar following a break of the order block highs.
GBP/JPY H1 chart
We are also seeing an M-formation on the hourly time frame. The neckline at 150.66 has a correlation with the 61.8% ratio also near the order block lows. This makes for a near term target of between 150.65/70 within the day's range of between 149.67/151.44 so far.
However, there could be some stalling between the 38.2% Fib located at 150.27 and then the 10-hour EMA first. As the price rises, so too will the EMA and drift in near to a 50% retracement near 150.50.
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