Daily Forex Update: GBP/JPY

By: Dima Chernovolov

GBP/JPY continues to fall inside 4-hour Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 4-bar level – which is the result of the slow Initial Trend (2 bars), low Uniformity (3 bars) and above-average Clarity (6 bars). GBP/JPY is expected to fall further inside this Down Channel – in line with the earlier downward reversal from the resistance area shown below.

As can be seen from the daily GBP/JPY chart below, the price earlier reversed down from the resistance area lying between the key resistance level 150.30 (former low of the daily Morning Star from January) and the 38.2% Fibonacci correction of the previous sharp downward impulse from the start of February. The proximity of this resistance area increases the probability GBP/JPY will continue to fall inside this Down Channel.

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