GBP/JPY 1H Chart: Minor correction south expected
The movement of the GBP/JPY exchange rate has been constrained in an ascending channel for the past three weeks. This pattern was formed shortly before the Pound reached its six-month low against the Yen at 145.07. This level also coincided with the bottom boundary of a more senior channel.
It seems that the pair has diminished its trading range in the given channel. The pair should have reached the its upper boundary earlier this week, but, instead, the Sterling entered a short-term period of consolidation slightly below the monthly PP and the weekly R2 at 150.10.
The pair might still trade higher during the following trading session or two; however, this lack of upside momentum could eventually result in a correction south. This scenario should be confirmed with a bearish breakout of the 100– and 200-hour SMAs circa 148.50. Downside target in this case is the senior channel and the six-month low near 145.50.
It seems that the pair has diminished its trading range in the given channel. The pair should have reached the its upper boundary earlier this week, but, instead, the Sterling entered a short-term period of consolidation slightly below the monthly PP and the weekly R2 at 150.10.
The pair might still trade higher during the following trading session or two; however, this lack of upside momentum could eventually result in a correction south. This scenario should be confirmed with a bearish breakout of the 100– and 200-hour SMAs circa 148.50. Downside target in this case is the senior channel and the six-month low near 145.50.