GBP/JPY Is Correcting But Remains Bullish

GBP/JPY is conforming to the general tendency of relative GBP depreciation and for the past week the pair has fallen with 140 pips. The good thing in this case is that the drop was unambigious, considering the two spinning top bars at the high of the move to the upside. Not to mention that as we can see on the W1 time frame, the pair could not break out above resistance zone around 152.50 – 152.70.

In my opinion this depreciation is corrective and the GBP will begin rising again in the medium term.

I expect the GBP will find a support in the zone around 143.50 – 143.30 and renew its medium term rally toward the monthly resistance around 159.00 – 159.30.

In the alternate scenario there will be a drop to the historical low around 126.00 – 126.30 in October – November 2016.