GBPJPY Technical Analysis Report 05 January, 2021               

  • GBPJPY reversed from resistance level 141.20
  • Likely to fall to 138.00

GBPJPY currency pair continues to fall after the price reversed down from the key resistance level 141.20 (former monthly high from last month) – strengthened by the upper daily Bollinger Band. The downward reversal from the resistance level 141.20 created the daily candlesticks reversal pattern Evening Star, highlighted below – which started the active minor impulse wave 3.

Given the strength of the resistance level 141.20 and the growing bullish sentiment affecting the yen today- GBPJPY is likely to fall further toward the next support level 138.00 (which reversed the price at the start and at the end of last month).

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