The situation in the traditional risk on against risk off sentiment represented by the GBP/JPY currency exchange rate has been complicated during the recent trading weeks.
During the recent trading sessions the pair has bounced off a resistance of the upper trend line of a medium term channel down pattern, which previously forced the Pound against the Yen through a dominant support level.
However, the resulting decline was stopped by the most junior pattern’s support together with the 55 and 100-period SMAs. Due to that reason the pair is set to face the resistance of the weekly PP and get squeezed in before a breakout. A breakout should occur to the downside, if the dominant pattern holds its ground.