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GBP/JPY Up Against Resistance & Trend Line

Posted on April 30, 2009 at 21:41 in Trading Desk by Ryan O'Keefe

Howdy Folks!

Well the blog has been quiet for a bit but I’m pleased to be blogging again. I’ve been busy working on a book for Wiley & Sons but I’m back now!

I think there are some interesting technical things happening on GBP/JPY tonight. The pair is up against a descending trend line which is on it’s third touch. If you subscribe to the trend line technical theory three touches “confirm” a trend line and GBP/JPY may have a technical reason to fall. There is also a double top that has formed along the trend line which can be seen well on the four and one hour charts.

It’s not the best supply level in my opinion but combined with the double top and trend line it may hold up for another round of selling. It will be interesting to see if the supply level around $146.50 holds up through the London open.

Best of luck,

Ryan

2 Responses to “GBP/JPY Up Against Resistance & Trend Line”

on 01 May 2009 at 11:00 am1Christian

Hi Ryan,

Yes it does look toppish in the same way $spx is at a top. Think a short is a good strategy. Will wait for the $spx to start selling after bank stress tests are out of the way before I get into this one.

Nice weekend,
C.
on 01 May 2009 at 12:39 pm2Ryan O'Keefe

Hey Christian,

Well, it ended up rallying through the trend line overnight so we have go on the hunt for a new demand level.

-R

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