Pound/yen, also known as “the dragon”, is pushing forward. Pullbacks are limited to the uptrend support line so far. The weakness of the yen boosted the pair, and the recent limited weakness of the pound is responsible for the pullbacks.
GBP JPY Uptrend Channel – Click image to enlarge
Uptrend support began in mid November, when the pair traded below 126. Since then, it peaked at 144.80 and now trades at 142.50. The recent pullback found support around the round number of 140.
Further below, 133.50 is a critical line: It was a triple top in March and April 2012. The round number of 130 also capped the pair more than once during October.
Further below, the round number of 120 was a trough in 2012, and the low of the lows was seen in late 2011: 116.77.
Looking up, 146 was a peak in mid 2010 and closely follows the recent peak of 144.80. 150.70 was a top back in January 2010, and 153.20 served as a swing high in late 2009. The last relevant line on the topside is 163, which capped twice in 2009.
Here is a chart with the bigger picture:
GBP JPY Long Term Lines – Click image to enlarge
All in all, GBP/JPY provides a lot of action for traders. Do you trade the geppy? Where is the cross headed next?
Further reading:
- GBP/USD: Weakness Could Extend To 1.5900
- Forex Analysis: AUD/USD Retreats from Strong Resistance