GBP only successful against JPY. Long on GBP/JPY?

FX forecast / GBP/JPY / Our expectations:

The fact is that, during the market sell-off the GBP only managed to keep in the long-term upward trend against JPY. The pair is technically on the upward trend since October 2016, with stock market uncertainty resulting in a temporary JPY increase over all currencies. As I said above, the GBP only does not cross the main trend line and is currently close to it, forming the reversed Head and Shoulders for promotion. In addition, we observe a return of the price above the main horizon and two subsequent tests with a successful rebound upward (formation and confirmation of the right shoulder). Fibonacci is also in favor of the price, with 23.6% able to withstand both tests. 50 and 200 SMA are bruised, the price is above 200 - the trend is in place, the raise is more likely. DeMarker manages to keep above 0.50 and pointing up - the upward momentum is in effect.

SL: 147.40

Alternative Scenario: If the price goes back below the main horizon, the positive scenario will be spoiled, and we are more likely to see a decrease to the main diagonal where we are looking for a new trend or breakthrough signal.

Read more:

• GBPBGN: increase in price is more probable from the current levels
• EURGBP: probability for an upcoming downward impulse
• GBPUSD short term sentiment in front of important data at 11:30 (GMT+3)
• A price below 2.268 can lead to a new decline by the pound
• Pound rises after the defeat of May’s Brexit deal