GBP/JPY: bullish on reversal with long-term bearish projection in 2016

Morgan Stanley made a forecast for GBP/JPY estimated long-term bearish condition for this pair with 161.00 in 2016. From the technical point of view - the weekly price is in bullish market condition for the ranging within R1 Pivot at 194.89 and Central Pivot at 179.38. The symmetric triangle pattern was broken by the price to below for the secondary correction to be started within the primary bullish condition. The price is located near and above Central Pivot at 179.38 which makes the bearish reversal to be very likely in the bear future. If the price breaks 179.38 level from above to below so we may see the first support level in 169.08 as the next bearish target for example.

By the way, 160.31 level as the value of 200 period SMA is the key reversal support level, which can be associated with above mentioned level 161.00 - if the price breaks this level to below so we may see the reversal of the price movement to the primary bearish market condition.

Long-Term Strategy: watch the price to break 179.38 level to below to open sell trade with 160.31 level as the next target to re-enter. Alternatively, watch the price to break R1 Pivot at 194.89 for possible buy trade.

Trend:

• W1 - bullish on reversal