This trade has been going very well and bears unlikely to back off anytime soon. The pair has dropped nearly 550 pips from 150.70 resistance. Price action since the 2017 low was merely consolidation in the form of an ascending channel which began following a massive 7000pip decline in mid 2015. I’m keeping my eye on the June and August 2017 lows near 139.50 and this is also the closing price of the 24 June 2016 Brexit sell-off. Of course, we can expect bounces along the way and some turbulence for bears. I’ll continue selling on dips from resistance levels, but I won’t be chasing the market. Key support is at 145/144.00 with a close below 144.00 targeting the 140.00 support area.

GBPJPY - 26 MAY 2018

Source: MARYNA MURRAY

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