The GBP/JPY has managed to increase today and to resume the yesterday’s bullish candle. I’ve said in the last weeks that the rate should rebound because has tested and retested a very strong support area. Price rallied  as the Yen could be punished by the Nikkei’s increase, the index is pressuring a dynamic resistance and seems motivated to take this out in the upcoming hours.

A Nikkei’s further increase will force the Yen to depreciate versus all its rivals again.  Price has made a false breakdown below a crucial support level and now goes higher, personally, I would like to see another retest before the rate will climb towards fresh new highs because we really need a confirmation that will climb further.

The Yen dropped as the Japanese Retail Sales have dropped by 0.2% in the previous month, even if the specialists have expected to see a 0.1% growth. On the other hand, the Cable rallies on the mixed UK’s data, the BRC Shop Price Index dropped by 0.1%, the Mortgage Approvals have come in line with expectations, was reported at 65K. The Pound received support from the M4 Money Supply, which increased by 0.6%, beating the 0.3% estimate and from the Net Lending to Individuals, which it was reported at 4.8B, higher versus the 4.3% estimate.

Price increased significantly today and looks determined to approach and reach the 151.91 former high in the upcoming days. I’ve said that a rejection from here will bring is a great buying opportunity, the rate should increase at least till the 150% Fibonacci line (ascending dotted line). It could come to retest the first warning line (Wl1) of the ascending pitchfork in the upcoming days, this situation will bring us a great buying opportunity.

Technically it is expected to climb much higher after the false breakdown below the first warning line (wl1) of the descending pitchfork and below the WL1, you can see that the rate has close above these levels and failed to reach the confluence area formed between the WL1 with the wl1.