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GBP/JPY at Key Support Factors

GBP/JPY has been sliding throughout the week, and is now testing a rising support seen in the 4H chart, just above 170. 

You can also a previous broken falling resistance, which is now being tested as support. 


(GBP/JPY 4H chart)

The 4H Stochastic is showing bullish divergence, a sign the market might need to take a break from the decline. The RSI dipped below 40, showing a loss of bullish momentum established in 2014 so far.

The 1H chart shows a pair that has dipped below the 61.8% retracement of last week's rally. Price action so far looks like a mirror image of last weeks. 


(GBP/JPY 1H chart)

It looks like GBP/JPY bulls are going to be in trouble for a little bit longer. But if price can rebound above 171.45, we can revive the bullish outlook to retest the 173.55-173.65 resistance area, and possibly the 174.83, 2014 high.