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GBP/JPY ticked higher in the previous two trading days, forming a bear flag – a bearish continuation pattern, which usually accelerates the preceding bearish move – on the 4-hour chart, as seen below.

4-hour chart

The pair has dived out of the bear flag. A breakdown would be confirmed if the currency 4-hour candle closes below the lower edge of the flag.

That would create a room for at least 300 pip move to the downside (target as per the measured move method).

The bearish view is backed by a below-50 reading on the relative strength index.

Trend: Bearish