Good day traders! Since my last update, GBP/JPY failed to move higher into my resistance zone that lies between 136.70 – 138.20. Price has since been moving lower and it might be possible that my proposed corrective phase has ended already. Support came in at a long-term median line yesterday but a break below that line could see price test the 0.5% and 0.618% Fib retracement levels at 129.86 and 128.48.
Although my proposed corrective phase could be over, there is certainly another scenario that could play out over the next few weeks.
Alternatively, we might have only seen the end of the A-wave in the GBP/JPY, with the B-wave nearing completion before the final C-wave higher might follow.
It will, therefore, be important to watch how price reacts if it trades lower and reaches the lower green median line of my smaller pitchfork. Should support step in there and turn price higher again, then a move towards the April high will make my second scenario more likely.
More updates to follow.
Bias: Cautiously bearish towards 129.86 and 128.48.
Until next time, have a great weekend and stay safe!