GBP/JPY broke below the upward trend line suggesting a continuation of a downtrend. After the breakout, price corrected sharply and formed support around the 156.60 area, which was broken last week.
Fibonacci applied to the first corrective wave after the breakout suggest 3 potential downside targets, S2, S3, and S4. The RSI oscillator formed a bearish divergence adding extra confirmation to the potential downtrend continuation.
Consider selling GBP/JPY while the rate is near R1 (156.60), targeting either S2, S3, or S4 (153.30) as a final target. The stop loss should be just below the R2 (157.40)
Support: 155.70, 155.10, 154.20, 153.30
Resistance: 156.60, 157.40
