The GBP/JPY has decreased and has resumed the yesterday’s bearish candle, touching fresh new lows on the Daily chart. We’ll see what will happen because the pair has reached an important confluence area, which could reject the price.

Price has increased after has touched the major confluence area, most likely has increased also because the Nikkei stock index has squeezed a little after the impressive drop. The Cable has dropped also versus the Euro and versus the greenback today, not only versus the Yen.

The Pound has dropped on the mixed UK’s data, personally I hope that we’ll have a great trading opportunity in the coming days, so you should keep and eye on this pair.

The United Kingdom Net Lending to Individuals surged from 4.8B to 4.9B in February, matching expectations, while the M4 Money Supply dropped by 0.3% in February, even if the traders have expected to increase by 0.5%, the indicator has fallen in the negative territory after just one increasing month. Moreover the Mortgage Approvals have decreased from 69K to 68K in the previous month, even if the economists have expected an increase to 70K.

You can see that the price is on a declining path on the short term, but now has reached a major support area represented by the confluence area formed by the lower median line (LML) of the major ascending pitchfork with the lower median line (lml) of the descending pitchfork.

Price has increased after has tested the mentioned confluence area, we could have a great buying opportunity if will stay above this confluence area and inside the major ascending pitchfork. However, a drop below the confluence area will open the door for more declines.

Another increase will take out the dynamic resistance from the median line (ml) of the descending pitchfork’s body and most likely will approach the median line (ML), the median line is acting a magnet and should attract the rate again.

We’ll have also a good selling opportunity if the rate will drop and will stabilize below the mentioned dynamic support levels.