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The bullish movement, which occurred yesterday, has failed to continue, as today GBP/JPY experienced a significant movement downwards, which at the particular moment is about to test the monthly R1 at 130.79, which might bring some bullish impetus. In case it is breached, the currency couple is likely to reach the weekly S1 at 130.05, which in turn will probably stop the downtrend. In addition, the overall indicator outlook is bullish, therefore supporting the potential trend reversal in the nearest future.
Traders' sentiment
SWFX market participants expect the downtrend to continue, since 38% of traders hold long positions and 62% of traders hold short positions. The distribution of orders, however, spots uptrend expectations, as 69% of traders ordered to buy and only 31% ordered to sell the British Pound.
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