The week closed with a Doji in GBP/JPY

The emergence of a Southern doji pattern on the GBP/JPY weekly chart suggests a certain degree of exhaustion in this market.

ADX readings above 30 indicating a strong trend coupled with the RSI below 40% strengthen the argument a reversal from oversold territory is now likely.

Southern doji candles are considered bullish especially when formed during a declining leg. In any case it should be treated with caution as the pattern can often appear numerous times during a downtrend.