Short GBP/JPY forms bearish engulfing pattern, sell below 151.75 : FxWirePro | January 4, 2018

Candle stick pattern – Bearish Engulfing pattern

GBP/JPY 0.41% has formed a minor top of 152.82 yesterday and declined slightly till 151.75 level. The pair is struggling to break above 153 and is currently trading around 152.20.

Minor term trend is neutral as long as support 151.75 holds.

The pair has taken support near 10- day MA yesterday and shown a minor jump. The major resistance is around 153.40 high made on Dec 8th 2017 and any break above confirms minor trend reversal. Break above 153.40 will take the pair till 155/155.88 (161.8% retracement).

The near term support is around 151.75 (10- day MA) and any break below will drag the pair till 150.90 (34- day EMA )/150.20 (55- day EMA ).

Major economic indicator to be released is UK services PMI. Any weaker than expected PMI data will drag the pair low.

It is good to sell below 151.75 with SL around 152.40 for the TP of 150.90/150.25.