GBPJPY charts are showing a head and shoulders formation, with the shoulder drawn near 159.30/50 and the neckline at 155.00. Today’s plunge in US equities suggests that carry trades may continue to pull back, especially as the DJIA hasn’t been able to hold above key support at 8,500, which works in favor of those selling GBPJPY. Drop below 155.00 may target a rising trendline at 150.00/50, which connects the 1/23, 4/28, and 5/18 lows.
[I]Source: FXTrek IntelliCharts[/I]