In the last post we asked the question “Has The JPY Trend Changed?” and there has been significant changes in the charts this past week. Many of the charts including the AUD/JPY, EUR/JPY, and USD/JPY have all broken the trend line. The exception has been the GBP/JPY which is still below the trend line on the 1% box size point and figure chart.

Taking a look at the GBP/JPY chart shows us several things coming together. The GBP/JPY has rallied all the way back up above the 141 area but has not been able to make it above 142. This is right where we had previous resistance and the pair was forced down before in December and January. You can see that the trend line also meets this exact spot which should act as resistance as well.

It is very interesting to note also that if you take the Fibonacci retracement from the high above 250 to the low below 120 you will get the 23.6% retracement line at the 142 area. All three of these things combined should be enough to push back down the GBP/JPY pair.

To play it safe we will placing a very tight stop. The pair will be sold at 141.10 with a stop loss at 142.05.

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