- GBP/JPY is correcting within a new downtrend.
- The correction is likely to eventually end and the downtrend will resume, pushing prices to new lows.
GBP/JPY has been falling since reversing from the high of September 2nd. It has now likely started a new short-term downtrend, reversing the previous uptrend from August.
Most recently it bottomed on September 6 and pulled back. It now appears to be falling again, perhaps resuming its dominant downtrend.
GBP/JPY 4-hour chart
In technical analysis theory, the odds favor an extension of the established downtrend, suggesting further weakness as the short-term trend develops.
A break below 186.51 (September 6 low) will confirm a further decline towards the next target at 184.51 (August 8 low) followed by 182.82 (August 6 low). The final downside target is the August 5 low at 180.06.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
