FXstreet.com (Barcelona) - Following a topside failure above 128.00 last Oct 18, also rejecting 21-day Bolli band, and against the backdrop of two preceding attempts having faced similar selling pressure on Sept 19 and Oct 5, GBP/JPY takes the lead from last Friday's bearish 126.85 close, and is currently making new lower low on the daily at 126.70.
The downside move increases technical pressure to call the notion of a market entering range-trading conditions, with extremes defined by 128.00/20 (April/May congestion lows) and 125.70 (June/Aug highs). A break below the latter may increase the possibilities of a broader range scenario with next support of note at 125.00 round figure, with a deeper 123.90/124.00 (late Aug low) base not being discarded should selling intensify. On the upside, 128.20 is key and needs to be regained.
The downside move increases technical pressure to call the notion of a market entering range-trading conditions, with extremes defined by 128.00/20 (April/May congestion lows) and 125.70 (June/Aug highs). A break below the latter may increase the possibilities of a broader range scenario with next support of note at 125.00 round figure, with a deeper 123.90/124.00 (late Aug low) base not being discarded should selling intensify. On the upside, 128.20 is key and needs to be regained.
