Stalking GBP/JPY
- Daily and 4H: We saw the GBP/JPY end last week with a bullish attempt, within a declining channel. This is a counter-trend rally, and a trading approach is to stalk the rally until it has completed the correction. (Refer to Weekly Technical Update 3.5.2010; last pair)
- The rally reversed at 137.50 area and is now testing 134.0, previous resistance now tested as support.
- I have a feeling there could be another rally attempt if 134.0 indeed holds.
- Then at the 136.13 are the truth would be told. A break above suggests a swing projection towards 138 and possibly the 138.80 area.
- If it holds, the market will be in a congestion pattern (triangle).
Fan Yang
Currency Analyst
Commodity Trading Advisor
