The cross is now under pressure selling off strongly in early trading today after closing lower on Monday. With GBPJPY now threatening the back of its broken falling channel (129.68), risk of a break back below that level is now developing. However, we might see a price hesitation there thus turning back the cross. In such a case, the 130.64 level, its Jan 20'2011 low will come in as the next upside objective with a violation of that level extending further gains towards its Jan 18'2011 high at 132.47. Further out, resistance stands at the 133.04 level with a clearance of that level allowing for more strength towards the 134.20 level, representing its Nov 18'2010 high. We may see a price hesitation there which could turn the cross back down. However, if that fails to occur, a resumption of its short-term uptrend will be triggered towards its Aug'2010 high at 137.75. On the downside, a break back into its long-term falling channel will suggest a further decline will occur towards the 128.28 level, its Jan 10'2011 low and even lower. All in all, with a corrective bear pressure triggered, risk remains lower in the immediate term.
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