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The GBP/JPY pair is trading sideways in the short term. It's located at 181.65 at the time of writing and it seems undecided. You knew from my previous analysis that the bias remains bearish and that the price could approach and reach new lows.
Tomorrow, the Japanese SPPI may report a 1.8% growth, while BOJ Core CPI is expected to increase by 3.2%. On the other hand, the UK is to release only the 10-Bond Auction. Furthermore, the Japanese Monetary Policy Meeting Minutes could move the rate on Wednesday.
GBP/JPY escaped from the flag pattern and now it moves sideways between the weekly pivot point of 181.89 and the 181.31 former low.
The bias remains bearish as long as it stays below the downtrend line. Failing to reach and retest the downtrend line may announce a strong downside pressure.
Dropping and closing below 181.31 may announce a larger drop. This is seen as a short opportunity.
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