Forex Technical Update

Previous: GBP/JPY Pushing Above Trendline...(9/5)

GBP/JPY Day Chart 9/7/2012 6:58 AM EDT


The GBP/JPY was last seen pushing above a trendline that goes back to the highs in March, near 133.47. The rally is now pushing above 125.80 resistance area, which was the high in June, seen in the daily chart. The RSI is pushing above 60, showing lost of momentum during the March through May decline. The next resistance to monitor for is in the 127 handle to 127.10 pivot area.

If there is a throwback now after the break above 125.80 and the market holds above 125.00, given some elbow space, then the short-term outlook is likely bullish toward this 127-127.10 area. The next key pivot above this area is the 130-130.05 pivot area.

Fan Yang CMT is a trader, educator and a Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

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