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Supports: 121.96; 121.57; 121.09
Outlook
Yesterday's bearish reaction continues, and the GBP/JPY currency pair has already managed to breach a 20-day SMA at 122.43, and now the currency couple is heading towards the support line of the falling wedge pattern at 121.96, which will probably bring some bullish momentum. In case it fails to stop the bearish movement, then next support at 121.57 (Weekly S1) could be the reversal point for the current tendency. At the same time, RSI indicator shows neutral signal and present resistances are at 122.55, 122.90 and 123.36, and seem to be safe for now.
Traders' sentiment
Traders at SWFX market remain optimistic regarding the GBP/JPY currency pair, as 70% of traders hold long positions and only 30% of traders hold short positions. The distribution of orders, however, is rather neutral, since 53% of traders ordered to buy and 47% ordered to sell the British Pound.