The dramatic collapse of yesterday took the GBP/JPY pair to 127.60 zones, forming a long black candlestick pattern. We notice how the pair was very close to our short term technical objective of 126.80. Classically speaking, the stable move below SMA50 and SMA100 could send the pair furthermore to retest yesterday's low, while Stochastic has negatively overlapped. Therefore, possible bearishness is to be seen today, targeting the psychological levels of 130.00 zones.
The trading range for today is among key support at 127.60 and key resistance at 143.60.
The general trend over short term basis is to the downside, targeting 126.80 as far as areas of 150.70 areas remain intact.
Support134.60132.90131.00130.00127.60Resistance136.20138.60139.75140.00140.50RecommendationBased on the charts and explanations above our opinion is, selling the pair from 136.20 targeting 130.00 and stop loss above 139.75 might be appropriate.