FX.co ★ GBP/JPY: uptrend line violated

GBP/JPY 167.21 Downside Obstacle!

The GBP/JPY pair registered a strong drop after failing to stay above the 169.00 psychological level. Now, it has dropped below the uptrend line which represented a downside obstacle signaling that the upwards movement (uptrend) could be over.

Now, it has found demand on the 167.21 former low. This represents a downside obstacle as well. The 167.96 historical level represents an upside obstacle.

GBP/JPY Forecast!

After its strong drop, a temporary rebound is natural. The broken uptrend line stands as an upside obstacle. Staying below the uptrend line and under 167.96 followed by a potential drop below 167.21 could open the door for more declines and could help the traders to catch a larger downside movement.