1st sign of weakness from GBP/JPY? Head and Shoulders pattern discussed yesterday appears to be confirmed with price rally back towards 143.0 but failing to cross back to the upper-side. Current price is trying to hold onto 142.0 after hitting lower earlier. Failure to stay close to 142 will open up 140.0 as the next level of potential support, while a move back up to 143 will invalidate the H&S pattern.
Stochastic hints of further sell-off, with readings breaking back under 80.0 and still a distance to run before entering the Oversold region. Recent readings peak also coincide with the failure to break above 143.0, increasing the current bearish bias.
Daily chart suggest the price could still find some support along the mid-term rising trendline. However, a bearish picture is still in the cards as Stochastic readings will most likely breach below 80.0 when price break below the trendline, acting as double jeopardy for the bulls.
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