The fake out breakout of this morning of the 146.50 level may have been the top of the current market , as I mentioned in the trading room this morning.
The GBPJPY dropped 500 pips and is now forming a bear flag in Asia.
The chart in the blog shows the fib retracements that the flag may reverse from . By the looks of the price action right now we may not even get above 144.
The rules of flag is that the breakout to the downside is as long as the flag pole, in this case being 500 pips long.
Assuming that the flag does not break 144 , and the flag pole being 500 pips this takes us to 139 ish
I have drawn a 1-2-3 sell formation with fib extensions on it , assuming that 144 is top of the flag. This gives down side targets of 141.96 , 141.37 , 140.77 , 139.92 , 138.85
The best place to enter this trade is the breakdown of the bear flag , which will likely happen sometime during the London session
