GBP/JPY 4H Chart 8/10/2012 10:26AM EDT
The GBP/JPY has been trading in a range this week between highest resistance at 123.26 and lowest support at 121.73. Going into the 8/10 US session, the market was in the range support area between 121.73 and 121.90. It is rallying sharply back toward the middle of the range.
If this Friday (8/10) session holds the pair below the middle, given some elbow space to the upside, there could be bearish bias developing. However, price action suggests that the market is attempting to retest the range high in the 123.17-123.26 area.
Above the 123.26 high, we have immediate resistance in the near-term at the 123.75 level. There is also a declining trendline that should meet price at about the 124.00 psychological handle. Therefore, the bullish outlook for now should be limited to a maximum of 124.00, until the market shows ability to break that.
GBP/JPY Daily Chart 8/7/2012 8:40AM EDT