GBP/JPY continues to fall in accordance with the following trade opportunity alert that I received today for this currency pair. GBP/JPY is expected to fall toward the Key Support level 151.388 (of the type Approach) in the next 7 trading days. The pair earlier reversed sharply down (at point A) from the strong combined resistance area lying at the intersection of the following resistance levels: the upper weekly Bollinger Band, the resistance trendline of the weekly Up Channel from November of 2012 as well as the resistance level 157.00 (all backed up by the strong bearish divergence visible on the weekly Momentum indicator). The sharp downward reversal from this resistance area created the weekly Japanese Candlestick reversal pattern – Evening Doji Star – which increases the probability the pair will fall to the target level 151.388 in 7 days.
GBP/JPY 1" title="GBP/JPY 1" width="610" height="385">
The following weekly GBP/JPY chart displays the aforementioned resistance levels:
GBP/JPY 2" title="GBP/JPY 2" width="600" height="663">