GBP/JPY Price Analysis: Correction likely to continue while below 151.00
- GBP/JPY corrects further to 150.78, the lowest in a week.
- Rebound back above 151.00, alleviate bearish pressure.
The GBP/JPY dropped further from multi-year highs above 153.50 and bottomed on Wednesday at 150.78, the lowest in a week. The four-hour chart still points to the downside, however, the bearish pressure eased after the recovery back above 151.00.
A confirmation under 151.00 would clear the way for another test of 150.80 and below the next target might be seen at 150.40, the 61.8% Fibonacci retracement of the last rally.
The bearish outlook remains intact. A recovery above 152.00 would reduce the odds of further losses. The pound needs to recover levels above 152.40 to remove the negative bias, increasing the possibility of a resumption of the bullish dominant trend.
GBP/JPY 4-hour chart
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Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
