GBPJPY finding 192.00 a difficult ledge to get over
It's been hard work but the sterling yen cross is trying to cement a move above the Dec 2014 high at 186.70. The line has been pivotal of late but it looks like we could be on for some further upside
GBPJPY weekly chart
There would be a case to say the pair could push on to the 61.8 fib of the 2007 fall at 199.80 but we're having trouble at the 192 level first, and then there's more long term resistance up at 192.55/60.
Coming in a bit closer we can see the action at the Dec 2014 high and also how we are behaving at the top
GBPJPY H4 chart
The trend is pretty obvious on the H4 although the lower trend line is not one I would hang my hat on alone. We do have a fair bit of tech in the area and the 189.70 area should be point to base a trade from. Stay above and play the upside, move below and play the downside. If we break 192 then there's a case to run with it, especially if it re-tests an holds. Then you can use the rest of the tech below to decide your pain barriers
As many of you will know though, I don't hold as much strength to technical analysis on the crosses as I do on the majors as obviously the majors usually have the deciding factors in a move. This and the EURPY cross are also very volatile so you need to give yourself a bit of room with trades. 20 pip stops won't help you on these pairs.
