Technical outlook and chart setups:
1. The GBP/JPY pair rose through the 174.20 levels yesterday. Please note that the pair is trading close to potential fibonacci 0.618 resistance, around the same levels (174.20/30) as depicted here. A bearish reaction can be expected here.
2. Support is seen at 173.00 followed by 172.50 and lower, while resistance is seen at 174.50, followed by 175.30 and higher respectively.
3. The structure indicates that GBP/JPY could fall below 170.00 levels, provided prices stay below 174.50.
Trading recommendations:
Initiate short positions now, stop at 174.80, target is open.
Good luck!
