The GBP/JPY pair slipped downwards violently, approaching the detected technical target that we mentioned in our yesterday's reports. These declines assisted the pair to breach the lower line of the ascending channel, which controlled the IM wave and thus; the corrective A-B-C formation started to resume the suggested Elliott cycle. Indicators support this negative scenario, particularly AROON. From here, possible bearishness is to be seen over intraday basis.
The trading range for today is among key support at 138.60 and key resistance at 145.50.
The general trend over short term basis is to the downside, targeting 126.80 as far as areas of 150.75 areas remain intact.
Support141.80141.00140.50140.00139.75Resistance142.45142.80143.60144.20144.80RecommendationBased on the charts and explanations above our opinion is, selling the pair from 142.45 targeting 139.75 and stop loss above 144.55 might be appropriate.