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27 Aug 2013
GBP/JPY pressing against 152.85; buyers giving up?
FXstreet.com (Barcelona) - GBP/JPY has expanded its short term momentum further south, currently resting at 152.85 session low after the topside failure seen earlier on Monday just shy of 155.00.
Broad-based Yen strength on reports that the U.S. may be planning a military strike to the Syrian regime has been so far the main theme in Asia, with the market now letting the dust settle after an intense first hour of price action in Tokyo.
From a technical perspective, GBP/JPY remains trapped in a 148.00-154.00 range since early April, which includes a failed two week-attempt to hold above the 155.00 area.
At the moment, and despite the GBP/JPY has been on a strong momentum off Aug 6 range lows, it may seem that buyers are running out of ammunition, with the risk-reward starting to look more attractive to play the short side.
However, further evidence that sellers are taking control is needed, with a clean break below 125.85 required, which would then expose 152.00 round number - Aug 19, 20 sequence of lows - ahead of 151.50 - Aug 5 high -. On the upside, buyers should regain 154.00 first for the uptrend to have some decent chances of resuming.
Broad-based Yen strength on reports that the U.S. may be planning a military strike to the Syrian regime has been so far the main theme in Asia, with the market now letting the dust settle after an intense first hour of price action in Tokyo.
From a technical perspective, GBP/JPY remains trapped in a 148.00-154.00 range since early April, which includes a failed two week-attempt to hold above the 155.00 area.
At the moment, and despite the GBP/JPY has been on a strong momentum off Aug 6 range lows, it may seem that buyers are running out of ammunition, with the risk-reward starting to look more attractive to play the short side.
However, further evidence that sellers are taking control is needed, with a clean break below 125.85 required, which would then expose 152.00 round number - Aug 19, 20 sequence of lows - ahead of 151.50 - Aug 5 high -. On the upside, buyers should regain 154.00 first for the uptrend to have some decent chances of resuming.