GBP/JPY continues to struggle with 150

The British pound has initially rally during the week but ran into enough trouble at the 150 handle to turn things around and form a shooting star. If we can break down below the bottom of that candle, I think the market drops down to the 146 handle, possibly the 145 handle. We are testing a previous uptrend line, which should now be resistance, so it makes sense that we could struggle a bit here. It’s also a very negative looking chart and could suggest that we are starting to enter more of a “risk off” type of attitude around the world, as this market tends to be rather sensitive to the overall attitude of traders.

I believe that the market breaking the top of the shooting star would be very bullish sign and could free traders to look for the 155 handle above, but I think that the momentum certainly seems be running out for the buyers. This will be very interesting, as it could be akin to a “canary in the coal mine”, meaning that we could be seeing the beginning of a serious issue here.

When it comes to the currency markets, I think this might be one of the most important charts to pay attention to right now. I believe that the market is about to make a significant move, and this chart might be the first place you see it happening.