I Expect A GBP/JPY Drop

The pair is already at its lowest levels since 2008.

On the monthly time frame, however, you can see a double top formed by a pair of “falling star” bars with highs at 148.454 and 148.100.

On the weekly time frame one can notice that a trend channel is forming, with width of over 1000 pips, but at the moment it remains incomplete. So far the pair hasn’t reached the support trend line for a fourth time so we could ascertain what type of channel it is.

Despite that we could conclude that after the two “falling star” bars and after a potential breakout below the support trend line the pair could test the local low from 1st October 2016 (124.781) or even some of the previous historical lows that form the support zone around 118.820 -  116.815.