GBPJPY—another run at 137.38?

My short from 136.10 did profit stop out yesterday for +70 pips. I then went long at 135.46 since the break above 135.20 looked like a keeper. So far, so good but the pair still has significant resistance ahead. The 137.38 price is going to be tough since it served as resistance on Monday and on Feb. 25. If it can get through that then it can probably get to 137.91 which is 50% of the move down from Feb. 17. I believe there is still more weakness in store for this pair but it likes to bounce around and the moves can be profitable.

Support is at 135.22, 134.93, 134.00, 133.49, 132.58, and 132.03. Resistance is at 136.46, 137.38, 137.91, 138.26, 139.59, and 141.68.

Here's the one-hour chart:


















© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

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