GBP/JPY Forecast April 4, 2017, Technical Analysis

The GBP/JPY pair fell during the day on Monday, breaking below the bottom of the hammer that formed on Friday. This essentially makes this a “hanging man”, and as a result this is a fairly negative sign. I think that the market could go to the lows again, near the 137.50 level, and then perhaps even the 137 level which is the 50% Fibonacci retracement level. A supportive candle could be a buying opportunity, but after this complete repudiation of the rally, I feel that the sellers are still very much in control.