The GBP/JPY has been respecting an ascending trend-line/channel since July of this year, and continues to do so this week while holding above support at 125.50. The Pair moved as high as 128.83 in September when it tested the lows from May 2012 and resistance at 128.50 before falling to its current level and entering a holding pattern of sorts. This is similar to the GBP/USD of course, which has been stuck in a range of around 80 pips since the 28th of September. The GBP/JPY is now likely to turn bullish if it can close above 126.50 after testing as high as 126.45 in yesterday's trading. A retest of last month's high is likely if 126.50 is cleared with resistance along the way at 126.84, 127.24 & 127.75. to the downside support is very strong at the previously mentioned 125.50 with additional support at 125.17 & 124.90. A close below 124.90 will break the ascending channel, and probably pull the pair down to the yearly lows at 121-122 before long. Overall this pair is still bullish, but a break higher or lower is needed to see a trend resume.
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