Technical analysis
The GPJPY pair has found strong dip buying interest and could be preparing to test towards the top a large descending broadening wedge pattern, around the 153.60 level.
The MACD and the Commodity Channel Index indicator on the four-hour time frame are both starting to issue buy signals.
What the possible outcomes are
In our most likely scenario, the GBPJPY pair will rally from current levels towards the top of a large descending broadening wedge pattern, around the 153.60 level.
Alternatively, the GBPJPY pair may stage one final large price pullback towards the 150.00 level before rally towards the 153.60 level.
Key levels
Support 151.15 150.00
Resistance 152.60 153.60
