I Expect The Downward GBP/JPY Trend To Continue

The pair formed a trend channel that lasted for almost 18 months (starting from 15^th December 2016 to the breakout to the downside on 23^rd May 2018).

Although the pair has tested the trend line it broke out below it could test the same trend line again and the resistance zone from which we can expect a renewal of the depreciation is at 148.50 – 149.20.

From that zone we could expect a renewal of the bearish trend to the next strong support zone around 136.50 -  135.50.

Below that are the supports at 129.00 – 128.50 and the local low at 128.37, but that is a long term scenario. 

The alternative scenario is for a renewal of the rally from 135.50 – 136.50.