Price drops and resumes the minor corrective phase. We had a false breakout above the 151.66 static resistance and now should drop further in the upcoming period. Is trading in the red and approaches an important horizontal support.
The GBP/JPY drops as the Nikkei has slipped lower in the last hours and tries to close the morning gap up. The JP225 moves sideways and stays in the buyer’s territory, is trading above the 20320 previous high, signaling a further increase in the upcoming period. The sellers failed to keep the price under the 20320 static support (resistance turned into support).
Technically, the Nikkei should climb much higher after the failure to come back down to retest the 20058 horizontal support, but will receive a confirmation only after will jump and will close above the 20498 previous high.
Price drops further after the false breakout above the 151.66 level, you can see that has come back to retest the horizontal resistance, but failed to close near this upside obstacle.
A valid breakdown below the 150% Fibonacci line will send the rate towards the 148.46 static support, where he may find support again. Only a valid breakdown below the mentioned static downside obstacle will confirm a major drop. Support can be found at the first warning line (WL1) as well.
However, an accumulation above the 148.48 static support could signal another leg higher in the upcoming period.
