At the moment the GBP/JPY currency pair is consolidating after a sharp downfall from the 135.11 level.
Earlier in a 4-hour graph the GBP/JPY formed a Shooting Star candlestick, indicating downside movement.
This candlestick combination was formed after the pair could not break the resistance level at 135.17, which means that the bulls could not solidify here and the bears started to increase their influence.
Break of the Fibonacci correction level 23.6 and the upside channel proves this point of view. Now we should expect a decline to the support level 131.23 with further target at 130.26.
However, it should be mentioned that if the resistance level 135.17 will be broken, short positions should be closed as it would lead to growth to 136.09.
