Forex Technical Update

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GBP/JPY 1H Chart 7/18/2012 9:25AM EDT

GBP/JPY

The GBP/JPY started trading in a short-term rising channel after finding support around 122.00 last week (7/12). This week, the channel has come close to 123.87, just shy of last week's high of 124.00.

As we get into the 7/18 US session, the GBP/JPY tested the rising channel support near 123.00 and is so far respecting, shown by the latest (9:00AM EDT) candlestick.

It will be interesting to see if the market can commit to a direction after Bernanke finishes his 2-day testimony in front of the senate.A break below 123.00 and possibly 122.90 pivot will be needed to reintroduce the bearish outlook the market has since the end of June through July so far. However, the ability to push above last week's high of 124.00 would indicate that the bearish outlook is lost, and the July/June highs in the 125.50-125.90 area will be the next key levels of key resistance.

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.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.