Just over a week ago I wrote about the day loss streak for GBP/JPY. Yen pairs following the Nikkei down the chute – technical analysis. There was a decent bounce from the 148.20’s at the Feb support line.
GBP/JPY technical analysis chart 12 August 2013
The trendlines have become very blurred. I don’t hold that much to short term lines and while I’m looking for the break of the closing wedge from the low Feb line and high May line, my emphasis is on the Feb line more than the May and June ones.
We’ve been supported by USD/JPY strength and if that turns then we could see a sharp move lower. We’ve medium support at 148.54, 148.02 with stronger at 147.28.Very strong support is not seen until 146.70.
On top the 55&100 dma’s are converging at 151.00 ahead of strong resistance at 151.17 and then it’s minor res until very strong resistance at 152.45.
With markets the way they are I would look to the two edges of sup/res at 146.70 and 152.45 as a decent risk reward range to play.