The GBP/JPY rally and profit taking on short trades that happened on Friday has been negated by an early Monday drop and sell-off. Brexit concerns are still weighing on the pound and investors tend to flee in the JPY safe haven.

The GBP/JPY, popular “Dragon” dropped below the trend line and a subsequent retest of the POC zone might spur another sell-off. 149.10-149.40 is the POC zone (D L4/L4, EMA89, 61.8 Fib, trend line X cross). Rejection targets 148.55 and a strong h1 breakout or 4h below the 148.40 might target 148.00 and 147.83.

W L3 – Weekly Camarilla Pivot (Weekly Interim Support)

W H3 – Weekly Camarilla Pivot (Weekly Interim Resistance)

W H4 – Weekly Camarilla Pivot (Strong Weekly Resistance)

D H4 – Daily Camarilla Pivot (Very Strong Daily Resistance)

D L3 – Daily Camarilla Pivot (Daily Support)

D L4 – Daily H4 Camarilla (Very Strong Daily Support)

POC – Point Of Confluence (The zone where we expect the price to react aka entry zone).