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Supports: 121.57; 120.85; 120.57
Outlook
GBP/JPY currency pair has already been following the falling wedge pattern for some time. The bullish movement was stopped, when the price touched resistance line of the wedge at 123.03, and now a strong bearish correction takes place. The price is heading towards weekly S1 at 121.57, which might slow down the current declineIn case 121.57 fails to stop the movement downwards, then next support at 120.85 (lower Bollinger band) is very likely to bring some bullish impulse. At the same time, RSI indicator remains neutral, therefore no significant moves are expected.
Traders' sentiment
Traders are optimistic with respect to GBP/JPY currency couple, as 72% of traders hold long positions and only 28% of traders hold short positions on GBP/JPY. The orders are distributed in a similar manner, since 58% of traders ordered to buy GBP/JPY, expecting that the British Pound will appreciate against the Japanese Yen.