© Dukascopy Bank SA
It seems that by trading close to the lower boundary of the bearish channel since Tuesday of last week, the Pound/Yen currency pair is getting ready to jump in the foreseeable future, as it is gaining bullish momentum. Additional support is provided by a major demand zone just below the trend-line at 178 (monthly S2; weekly S1). Despite that, we consider the medium and long-term outlook to be bearish. If the cross fails to increase above the weekly PP at 181.15, then the continuous bearish case will be almost inevitable. Technical studies in the near term are also giving negative signals, while market participants tend to be neutral, as longs stay in a slight majority with 51% of all trades.
© Dukascopy Bank SA