Technical analysis for the GBP/JPY, the pair formed a triple top on the weekly chart and broke below the low on the weekly at 152.91, opening the door for further declines. The first target for this bearish breakout is the 1.272 FIB extension at 148.45-50, where we have the low at the bottom of the range on the daily chart. The second target for the GBP/JPY is the 1.618 FIB extension on the daily chart at 146.55. The third target is the 0.382 FIB retracement on the monthly chart at 145.20. And the fourth target is the 0.618 FIB retracement on the weekly chart at 142.65. But before all that, we need to see a break below the range on the daily chart, below 148.45.
Looking at the bigger picture, on the weekly chart, the GBP/JPY is within its third bullish wave on the weekly chart. If the GBP/JPY break above the range and the high at 158.22, that will resume the bullish wave on the weekly chart. The fourth target for that wave is the 2.272 FIB extension at 167.00.
We must keep in mind that any ‘positive’ development in the war between Russia and Ukraine, as unlikely as it is sounds, will send the GBP/JPY soaring.