GBP/JPY’s steep decline last week argue that it might be correcting whole up trend from 184.35 to 219.56. Firm break of 212.36 support would confirm this case, and bring deeper fall to 38.2% retracement of 184.35 to 219.56 at 206.10. For now, risk will stay on the downside as long as 216.30 minor resistance holds, in case of recovery
In the bigger picture, as long as 55 W EMA (now at 208.76) holds, the long term up trend is still expected to continue. But some more consolidations should be seen below 219.56 medium term top first.
In the long term picture, up trend from 116.83 (2011 low) is in progress. Next target is 251.09 (2007 high). This will remain the favored case as long as 55 M EMA (now at 188.96) holds.
