The dragon, GBP/JPY shows a huge M pattern on H1 time frame, but there are lack of sellers who could tank the price more to the downside. DAX has been bullish today despite problem with Deutsche Bank (DE:DBKGn) (DB). DAX had a massive gap down to start with and DB is down 4 % today. Only EU 13.9BN now of worth with a USD 14BN claim makes DB technically insolvent, and DAX might lose momentum to the upside that could reflect also on GBP/JPY pair that has a very high positive correlation with DAX.
Technically because we have 2 contradicting patterns we ideally want to see breakout. Above 131.45 there is a strong scope for 131.92 and 132.20, but if 131.45 rejects the price we might see 130.90 again. Below 130.90, 130.45 and 130.00 are targets. No man’s land in between.