Cross-rates signals: GBP/JPY is near significant support

After the rapid strengthening of the yen across the entire spectrum of the market on the reduction of the volume of redemption of the Japanese state bonds, the Japanese yen appreciably strengthened against major competitors, especially against the British pound. So, the cross-rate GBP/JPY actually in two days weakened by almost 300 points and approached the level of significant support 150.50-10, which meets the upward trend since August 2017. Also, this cross on the daily chart formed an upward triangle, which in the future may indicate an acceleration of the uptrend.

Given the safety of the uptrend and a significant overbought of the pair GBP/JPY, it is necessary to expect the formation of correction from the support levels: 150.50 and 150.00. Given the downward dynamics of the pair and the fundamental factors contributing to the strengthening of the yen, the entrance to the purchase will be the fixing of the price above the level of 150.90-151.00. After this, one should expect a test of resistance levels: 152.00-50 and 153.00-50. Fixing the price below support 150.00 cancels the scenario for correction.

GBP/JPY chart H4. The current price is 150.60.

Hanzenko Anton