The yen is picking up a safe-haven bid in the open of the week pertaining to fear of the delta variant spreading worldwide. However, from a technical standpoint, the price of GBP/JPY is meeting weekly support, so there is a case for a meanwhile bullish correction presenting itself. On the weekly chart, specifically, a bullish chart pattern is also compelling in the form of a bullish M-formation.
The last time the price was this low, bulls took the market to fresh monthly highs, so it is likely to be a strong area of meanwhile support. A 50% mean reversion aligns with the prior weekly closing lows and open as a higher probability resistance area for the bulls to target near 152.20. The monthly close will be important, but the current state of affairs is bearish below 150.80 towards 147.90. GBP/JPY bears are in control, but weekly support could result in a meaningful correction
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The yen is picking up a safe-haven bid in the open of the week pertaining to fear of the delta variant spreading worldwide. However, from a technical standpoint, the price of GBP/JPY is meeting weekly support, so there is a case for a meanwhile bullish correction presenting itself. On the weekly chart, specifically, a bullish chart pattern is also compelling in the form of a bullish M-formation.
The last time the price was this low, bulls took the market to fresh monthly highs, so it is likely to be a strong area of meanwhile support. A 50% mean reversion aligns with the prior weekly closing lows and open as a higher probability resistance area for the bulls to target near 152.20. The monthly close will be important, but the current state of affairs is bearish below 150.80 towards 147.90.