The GBP/JPY candlestick analysis for October 14, 2010

The GBP/JPY rolls back after it declined to 129.00. Neverthless, it is expected that the currency pair will move down to the support level of 128.00 soon.

Earlier on a 4-hour graph, the GBP/JPY had formed the combination of candlestick Bearish Engulfing, thus denoting the decline. This candlestick emerged after the currency pair could not breach the mark of 135.00, which means that the bulls did not fixate here and the bears started to increase their influence.
The breakthrough of Fibonacci correctional level 23.6 means that this viewpoint is correct. Besides, the GBP/JPY had formed one more bearish combination of candlesticks Falling Three Methods.
However, if the resistance level of 132.45 is breached, then it is recommended to cut short positions, as it will lead to increase to 135.00

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