GBPJPY has seen a significant ascent towards 4-month highs.
The currency pair has been looking to break away from the median regression to attempt another breakout of the upside channel.
However, the recent hidden divergence followed by a standard divergence hints towards a shift in the trend.
With prices hovering at the mean, a move towards the lower channel, which is a confluence of the top border of the Ichimoku cloud, could be likely.
Should the trend shift to the downside, then Q4 lows could come into play.
An intraday outlook shows a slight move above the mean of the long-term channel. However, with the momentum indicator hinting at a strong hidden bearish divergence, prices could start to wane.
Recent highs at the mid-141 range could be a step too far, as the first target for downward bias would be the 23.6% of the 139.48/141.37 upward Fibonacci leg.
Should prices reach the 38.2%, then cloud engulfment would take effect and weigh on the pair further. Fresh yearly lows will then be on the horizon, as the confluence of the lower border of the cloud and the 50% level will be broken.