Forex Technical Update
GBP/JPY 4H Chart 5/10/2012, 10:01 AM EDT
The BoE held the benchmark interest rate at 0.50% and did not expand the asset purchase program. Along with a relief against risk aversion, the GBP/JPY is rallying alongside the GBP/USD. The 4H GBP/JPY chart shows a market rallying from the 127.77 wedge support to above 1.29, and above a declining wedge resistance. The bearish scenario is shelved for further medium term consolidation with development of short-term price bullish action.
If the market can hold above the 128.50 level, preferably staying above 129.00, there is upside risk toward the origin of the wedge near 131.70-131.80. Before that, there is going to be challenge against the rally around the 130.00 area. 130.25 is about 61.8% retracement, and also support for the topping pattern that formed under 131.80.
Fan Yang CMT is the Chief Technical Strategist, trader, educator and a of the main contributors to FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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