GBPJPY—finally climbing

This pair seems to have found some energy to fuel the lethargic rally it has been trying to get underway this week. When last I wrote about the pair on Tuesday, I said I had two short positions that the rally would probably take out. It took out the one from 133.86 at 133.46 for +40 pips and the one from 136.03 at 134.46 for +157 pips. I stayed out of the pair until yesterday when I took a long position at 133.80. The question is how high could it correct?

If it doesn't get beaten down by the NFP news then resistance is at 134.84/96, 135.52, and 136.77. The last one is close to the .382 retracement (136.45) of the move down from the Feb. 17 high of 143.65 so it should be able to make it up there, again depending on emotional reactions to NFP news. Once it does so, I'd look for another short. Support is at 134.09, 133.78, 133.28, and 132.65. This pair still hasn't achieved the price targets I had for it down to 130.

Here's the three-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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