GBP/JPY amid negative outlook - Technical Analysis - 28-12-2015

GBP/JPY kept receding in its short term and intra-day levels trading, leaning thereafter on the important support of 178.65, which represents the ratio 61.8% of Fibonacci retracement levels for an ascending wave in the long term (from 168.01 to 195.88), as the pair try to stimulate some positive momentum that would help it make some gains and correct the recent losing streak, along with an influx of positive signals from relative power indicators.

 

Therefore we expect the pair to undergo a correctional rise, as long as the support of 178.65 holds on, targeting thereafter the resistance of 181.94, which represents the ratio 50% of the same retracement levels.