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GBP/JPY Topping after Bullish Correction

GBP/JPY has been in a bullish correction in October rallying from about 180.50 to 184.50 to end last week. This week, price tried but failed to push through that 184.80 high and instead is forming a price top as we can see in the 4H chart.

GBP/JPY 4H Chart 10/12/2015


(click to enlarge)

There is no strong trend in GBP/JPY in the short-term, but Monday's price action does suggest that the rally over the last couple of weeks might be over. Note that price is returning below the 200-period SMA and breaking below a rising trendline. These are early signs of a shift in trend, and a bearish outlook has 182, then the 180.50 lows in sight with risk towards 180.00, but I would be conservative on the bearish outlook in case the market has turned sideways. That 182.00 pivot would be a good conservative target to the downside. Now, if price comes back to around 184.50 and doesn't just take off to the upside, I would consider shorting with the target of 182, and a stop above 184.80.