GBP/JPY - Sharp Reversal
GBP/JPY is now bouncing back towards 185.00. Hourly resistance lies at 187.64 (28/08/2015 high). Key resistance can be found at 195.88 (24/06/2015 high). However, we remain bearish on the pair as the technical structure suggests a downside momentum.
In the long-term, the lack of any medium-term bearish reversal pattern favours a bullish bias. The successful test of the strong support at 175.51 (03/02/2015 low) signals persistent buying interest. Key resistances stand at 197.45 (26/09/2008 high). A major support area can be found between 169.51 (11/04/2014 low) and 167.78 (18/03/2014 low).