GBP/JPY is trading in a three-month descending triangle and a junior falling wedge which was formed on October 20. If looking at the current situation, the Pound is facing the combined resistance of the 100-, 55– and 200-hour SMAs and the weekly PP in the 148.30/65 area. This area coincides with the upper boundary of the wedge. Technical indicators suggest that the bearish sentiment might prevail in the market during this session. This might push the pair down to the lower triangle boundary circa the psychological 147.00 mark. Subsequently, both patterns point to a surge in the medium term, as it is more likely that the wedge is breached to the upside. The nearest northern target for this week could be the weekly R1 and the monthly PP circa 149.70. The latter , however, will change on Friday as a new month is to start.
