GBP/JPY - it is time for a rebound
Last week's analysis brought a good profit. When price was at 178.22, I pointed that falls will continue in analysis entitled "next break 175.80." Currently price reached the support in area 175.50 where exchange rate reacted many times between December 2013 and April 2015. It is likely that rebound will occur at current level and further price direction will depend on that rebound strength. However if GBP/JPY breaks below this support, it will be a confirmation of a deeper correction or even a trend reversal. Strong rebound from this support with new local high will be a signal that correction is over and price will return to uptrend.
Wider view.
Since 2012, GBP/JPY moved in an uptrend but last six months was highly problematic for demand and achieving new highs. Last time new high was approached in June 21 2015 at 195.87 level and after that, price moved with lower highs and lower lows. It is a confirmation that correction is in progress or even a trend reversal.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.