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  • 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

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

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.