GBP/JPY breaches an important support - Technical Analysis - 26-01-2016
GBP/JPY fell in the intraday levels, with the ongoing negative pressure from the SMA50, breaching thereafter the important support of 167.91, which represents the ratio 38.2% of Fibonacci retracement levels for an ascending wave in the short term (from 163.98 to 170.35), with the pair settling below that support, doubling the negative pressures on the coming trading, along with an influx of negative signals from relative power indicators like the Stochastic as shown below the attached chart.
Therefore we expect more losses to come for the pair, targeting the support of 165.48, which represents the ratio 76.4% of the same retracement levels mentioned earlier.
Trend
Bearish