The pair is testing a key area of resistance btw 148.20/149.00. This was a former support area as illustrated on my chart on the ascending channel that extends from the 2017 low. Support broke on 23 May and the bulls retested this broken support as new resistance between 6 and 7 June, but the bears held their ground. Today the pair is right back to test the level as resistance and in fact the pair is more than 100p higher than it was in early June. The pair has been bulish since rejecting the 144.00 handle on 28 June. Over the past 11 trading sessions since then, the pair has only had 2 “down” days! A Daily close below 149.00 with a sell signal would take us to first support at 148.10 area. A Daily close above former channel support will negate my bearish outlook. but the bulls would need to get through the trendline of 2 Feb to push price higher.

GBPJPY DAILY 16 JULY 2018

Source: MARYNA MURRAY

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.