GBP/JPY - A Spot of Bother at Previous Resistance?

asked by u/rwilliams · 25d · 0 answers

Alright folks, casting an eye over $GBP/JPY today and it's looking a bit indecisive, which, let's be honest, is most days for most pairs. After that decent run up, it looks like we're bumping our heads right around the 190.00-190.50 zone. Not exactly a surprise, considering that was a pretty sticky resistance level back in early April. The daily candle is starting to show a bit of a wick to the upside, suggesting some sellers are poking their heads out of their bunkers up there. Price action on the lower timeframes is also looking a bit wobbly, not exactly screaming 'breakout' just yet.

My take? If we can't get a convincing close above 190.50 on the daily, accompanied by some decent volume, then I'd be watching for a potential retest of the 188.00-188.50 area. That's where the prior swing high was, and it should offer some support if the rally is still intact. The risk for this scenario, naturally, is a strong candle close above 190.50. If that happens, then my whole 'potential resistance' idea goes out the window and we're likely looking at a move towards 191.50 or higher. Just my two cents, and as always, the market delights in making us look foolish.

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