- GBP/JPY bulls seeking meanwhile restest of daily highs near 157.80.
- Bears keeping weekly targets in sight as per weekly W-formation.
Due to the latest price action, we are now back to needing to consider more upside from this pair before a move to the downside.
In Monday's analysis, GBP/JPY Price Analysis: Weekly W-formation remains in play, the price was starting to correct to the downside which was encouraging a bearish focus due to the W-formation on the weekly chart:
This led to an analysis of the lower time frames where a period of distribution was drawn up on the hourly chart as follows:
However, in subsequent trade, the price has broken the first layer of resistance in a much stronger correction than what might have been anticipated:
If this is a phase of distribution, then there could be a lot more sideways consolidation to play out yet. While the weekly chart's W-formation remains a compelling reversion pattern, should the bull's take charge beyond 157.40, then a last-ditch effort could see the price test the prior weekly highs of 158.22 first:
As illustrated, if the price were to move in on the prior highs prior to a run lower, then this would leave the 38.2% and 50% ratios aligned with the prior structure as targets.
There is also a daily W-formation now belong formed that is worth noting:
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