GBP/JPY Pullback into heavy SELLOFF.
It has been a while since I looked at and posted my thoughts on the GBP/JPY pair so here we go!
Last weeks price action was jammed between a range measuring 260 PIPs and the Daily T.F shows clear signs of 'potential bearish momentum'. Price has had numerous attempts in reaching into the 144.00 area but was whipped back to the downside in a swift manner.
142.50 is a vital area for GJ and we need to make a note that the market could bounce from this zone into my highlighted area labelled: 'New swing shoulder' to form a new lower swing high that could give us a better price entry for a short trade.
Alternatively, Price may dump straight into the lower target of 140.75 without a pullback if sterling weakness accelerates over the next 24 hours. 140.00 Monthly support may also act as a magnet for the price as the pair follows simple lower swing highs, into lows on the H4 TF. It is relatively straight forward as I see no need to have a bullish bias right now unless we see a drastic move up and beyond 145.00.