GBP/JPY - Is Ready to Break The Ascending Trend Line - Level to Have in Mind - 08/17/2017 (GMT)

Sterling was developing within an ascending triangle against the Japanese yen since April, with significant resistance level at 147.70. Since last week the GBP/JPY pair sank almost 2% and it seems to be ready to break the referred pattern to the downside. Our expectation is a continuation of the falling tendency with first target the 139.85 support barrier, which overlaps with the 50-week SMA.

Technical indicators on the daily chart are biased lower on a daily basis. The MACD oscillator is moving below both its zero and trigger lines suggesting a stronger bearish momentum in the next few sessions. In addition, the Relative Strength Index (RSI) is following a downward path near 30, confirming the recent bearish attitude of the price.