GBP/JPY Technicals: 138.75 bull/bear border
|TheGeppy ($GBPJPY) is a monster, it has big moves and is quite volatile; we love it and right now this pair is at a very important level. Let´s take it pre-Brexit.
After the Brexit vot this pair fell more than 2500 pips the made a high at 138.75 which is the level we are trading at. But we are trading in no man´s land.
After that big 1000 pip move to the upside the GBP/JPY has been trading inside of a wedge which could mean that we are getting ready for a continuation of this move to the upside but the heavy tests on the 138.75 might signal otherwise. Even though bulls have kept this level from breaking, everytime we we think a rally might ignite sellers push price down and test the bull/bear line again.... and again.
Should this support zone break w might find buyers at wehich is the next logical structure zone for bulls to be positioned; but we see it as fragile and if this scenario in fact develops we could see price on the geppy drop and be supported by bulls at the 133.60
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