GBP/JPY Might Be Beginning a Correction

The pair has been falling and falling hard for the past nine months.

Despite this you can see a signal on the daily time frame that a correction is about to begin.
 

Since the pair couldn’t stay below the support at 152.00 and despite the fact that it fell to 151.639, in the past two days the GBP/JPY formed an inverted hammer candlestick and a marubozu candlestick on the daily time frame, which are very telling signals that a correction might begin.

 After those two candlesticks there was another attempt to test the support at 152.00, which is also something that happens often at the beginning of a correction. If the pair does start rising the first level of resistance is, in my opinion, around 155.00 – 155.20, which is the upper band of the Bollinger Bands indicator that can be viewed on the 4-hour time frame.

In conclusion I would say that we should follow very closely how the pair behaves at that level.