GBP/JPY begins a correctional rise. - technical analysis - 16-12-2015

GBP/JPY kept on falling in the short term and intraday levels, along with a continuance of the negative pressure from the simple moving average for the period 50, and the overall dominance of the main downward trend in the medium and long terms; even though some positive signals started surfacing, first and foremost: the important support of 182.33 held on; this support represents the ratio 76.4 of Fibonacci retracement levels for an ascending wave in the medium term (from 180.33 to 188.81); Also a formation of a positive divergence in the Stochastic indicator as shown below the attached chart.

 

Therefore we believe it's likely the pair will rise, targeting the resistance of 184.57, which represents the ratio 50% of the same retracement levels mentioned earlier, and along with touching the resistance of the simple moving average.