GBP/JPY - Base Formation Likely Underway
GBP/JPY is likely forming a base near the key support at 175.85. A break of the resistance at 179.43 (27/01/2015 high, see also the declining trendline) would confirm such scenario. A key resistance area stands between 180.28 and 180.94. An hourly support can now found at 177.39 (intraday low).
In the long-term, the lack of any medium-term bearish reversal pattern favours a bullish bias. A support is given by the 200-day moving average (around 176.30), while a strong support area lies between 169.51 (11/04/2014 low) and 167.78 (18/03/2014 low). A strong resistances stands at 190.00 (psychological threshold).