GBP/JPY Technicals: 138.75 bull/bear border

Orlando Gutierrez Learn 2 Trade

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

Author

Orlando Gutierrez

Learn 2 Trade

Orlando has been involved in the financial markets for about 10 years. His focus is Global Macro and he is a strong believer that the best way to trade the currency markets is focusing on the big picture and holding on to big macro trends.

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