GBP/JPY Is Very Bearish

GBP/JPY has been testing the support at 104.05 – 104.00 since the end of last week, and even though the pair has formed a distinct spinning top candlestick on the daily time-frame at that level the pair remains very bearish. Should the spinning top candlestick on the daily time-frame prove to be a valid signal for a move to the upside after all there would likely be a rally towards the closest resistance level, which is at 141.00. That said, considering how strong the bearish trend is the move to the downside will probably continue once the pair breaks out below the aforementioned support at 104.00 – 104.05, as well as the previous low at 139.80. When or if that happens the next target to the downside is likely around 138.70.