Midday Report

The GBP/JPY inclined aggressively as it succeeded to breach the downtrend line as seen the provided daily chart. It's currently re-testing a very critical resistance level- previous solid support and the neckline for the short term double top pattern-. The daily closing became very important as a closing above 146.80 may be able to change the short term direction to the upside otherwise we can witness a panic bearish movement. Therefore, thepair's behavior should be watched out very carefully before defining the next big movebecause the mentioned movement might be just a re-test for the broken neckline.

The trading range for today is among key support at 141.60 and key resistance at 151.60.

The general trend is to the downside as far as 167.40 remains intact with target at116.00.

RecommendationBased on the charts and explanations above our opinion is, watching out the daily closing above or below 146.80 to define the next direction