As the GBP/JPY market is volatile due to the Brexit Saga, fundamental traders are having a ball and technical trades are enjoying applying their skills. Here is my idea of the market movement in the next few days to weeks.
The 1Hour chart reflects that the market is in a downward wedge and waiting to break out. My views is that the downward trend is not done with us as yet.
Target 1:
My current target is a drop until next support line 140.226 (this is where I will take profit for round one). I am very conservative and will take the profit a few pips above target one due to spreads etc.
Target 2:
When the market opens a new candle under 140.226 on the hour chart, I will open a new sell for target 2 at 139.841.
Target A $ B
With the above in mind the current pattern reflects a possible head and shoulders at an angle, where line AB is the neckline and if a new candle on the hour is created above the AB line the Target will be 140.845 which is also currently used as a breakout point in the above analysis. After the break out I will focus on taking a long to Target A at 141.134 when the line CD has been broken and also Target B at 141.616