The GBP/JPY has decreased again today and has managed to erase the yesterday’s gains, could drop even lower in the coming days because we have a major confluence area that is acting as a magnet and could attract the rate. The pair has decreased surprisingly because the Nikkei stock index has increased significantly, however, I’ve said in my yesterday’s article that we could see a further drop before the rate will start a significant rebound.

The Cable is trading in the red versus all its major rivals, is in a correction phase right now, remains to see how long this will be.

The Yen has increased even if the Nikkei has bounced back today, the index has found strong support right above the 18936 static support and above a major confluence area, so a further increase is favored. However the JP225 index continues to move sideways on the short term, the retreat was expected after another failure to close above the 19700 psychological level, I want to remind you that the perspective remains bullish on the Nikkei as long as is trading above the 18936 level.

The Cable has lost ground versus the Yen also because the UK BBA Mortgage Approvals have dropped from 44.1K to 42.6K, even if the traders have expected an increase to 44.9K.

The price has decreased today and could approach the 138.28 yesterday’s low till the end of the day if the Nikkei stock index will decrease a little, is moving somehow sideways on the short term, but remains under pressure. I’ve said in the yesterday’s article that we could have a rebound after the several false breakouts below the lower median line (lml) of the minor descending pitchfork, but I’ve also said that I would like if the rate will come down to test the major confluence area formed at the intersection between the lower median line (LML) with the minor lower median line (lml) because we could have a great buying opportunity if we’ll have a rejection from there. The bearish movement will resume only if the rate will escape from the ascending pitchfork’s body.