As the USDJPY pair got under severe selling pressure, it has dragged all JPY crosses lower. The GBPJPY cross is now testing February highs near 150, and if that support is not held, we could see another leg lower toward 148.80, where March lows are seen.
Alternatively, the resistance appears to be near the 151 region, and if broken to the upside, further rally toward the current cycle highs at 153 might occur.
More importantly, there is a strong bearish divergence between the RSI indicator and the price, which tends to preclude major topping or bottoming patterns. Thus, the medium-term bull market might be over soon.
As the cross appears somewhat oversold, we could see a little bounce tomorrow, but as long as the price fails to post new highs, it still might be a larger topping pattern.
