The GBP/JPY pair has collapsed yesterday, reaching our defined technical objective at 134.90. The panic downside movements during this week, whichhave signaled that the suggested Elliott count is in favor and further bearishness could be seen over intraday and short term basis as well; while being supported by RSI 14 negative sign. From time to time we expect some kind of big bounce as a nature for the IM waves.
The trading range for the week is among key support at 131.60 and key resistance at 140.00.
The general trend is to the downside as far as 167.40 remains intact with target at116.00.
|Recommendation||Based on the charts and explanations above our opinion is, selling the pair from 136.60 targeting 134.55 and stop loss above 138.45 might be appropriate.|