GBP/JPY 4H Chart: Channel Down

The Pound is moving in a similar direction versus the Japan's currency, as it is doing against the Greenback. In the foreseeable future we expect GBP/JPY to test the 200-period SMA at 164.79, but only in case the bulls are successful in dealing with the monthly pivot point at 162.21, which is the immediate resistance for this cross. Development to the upside is backed by the SWFX market sentiment in a slight majority (53%) of all cases, while 4H studies are additionally supporting the positive outlook. However, weekly indicators are much more sceptical on the matter. We foresee a failure at 168.81, where the upper boundary of the channel down pattern is guarded by the monthly R1 and weekly R3.