* 4H: The GBP/JPY was seen to rally towards 138 area if the market was able to close above 133.00 yesterday. However the market topped off at the declining channel resistance. In the 4H chart is is testing the 200SMA. In the 1H chart you can see it testing a rising near-term/short-term support.
* A break below suggests the market can decline to 130.50 (61.8% retracement). Another scenario is that we are in a 3-drive pattern that will end up with a strong rally after the 5-wave pattern is complete. The 3rd swing can end up near 129.50 area just above the 78.6% retracement area.
* If the market does decline to this area and bottoms, dont expect the market to rally to 138, but instead to retest the 135 area first.