The GBPJPY is using the psychological as it navigates through the current range it is trading in. Last night in London 127.500 held as support and the bulls bought the GBPJPY up through 128.00 and then up to 128.50. Price returned to 128.00, headed back up to 128.50 and then fell back to 128.00. There are obvious 50 pip scalp opportunities on the table right now in the GBPJPY between these levels.

Trade Plan
In the Asian Session today, look for 128.00 support to break and for price to return to 127.500. If 128.00 holds target 128.50.

If you plot out the psychological levels every 50 pips, you will see that the GBPJPY continually respects these levels.

GBPJPY-PSYCH-LEVELS-1

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