- GBP/JPY bears on the approach as the price runs too far without a meaningful correction.
- A monthly 50% mean reversion target comes in at old resistance.
GBP/JPY is in need of a healthy correction according to the longer-term time frames.
The following illustrates how the Fibonaccis align perfectly with the prior resistance on the way to a 50% monthly mean reversion confluence target with prior highs.
Monthly chart
-637509173118147520.png)
As illustrated, the price has shot higher in a series of uninterrupted monthly higher closes. This is simply not sustainable for much longer.
There is a 50% mean reversion target that aligns perfectly with old resistance.
Daily chart
-637509175953764076.png)
On the daily chart, however, there are a number of support structures that will be needed to give way that has a perfect confluence with the Fibonacci retracements levels all the way to the 50% mean reversion target.
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