GBPJPY Chart Technical Outlook prints the final leg in a bullish cycle, bulls target 188.70
GBP/JPY prints a five-wave bullish cycle, with the final leg in play. It can be an ending diagonal structure, which indicates weakness in the bullish momentum. Prices are overbought, showing bearish divergence in intraday charts.
The stubborn inflation data from the UK earlier this week has helped GBP to advance. Retail sales are due this Friday with an expected decline.
I expect the rally to fade soon and a downside correction to begin.
Resistances: 188.70, 190.00
Supports: 186.25, 182.80
