June 23, 2010 – GBP/JPY – Uptrend
(Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)
6/16/2010 – GBP/JPY – Price action on GBP/JPY, a daily chart of which is shown, has been following an uptrend support line extending from the 15-month low hit in late May. This uptrend line represents a bullish correction within the context of a strong downtrend channel that began in August 2009.
Key upside resistance on this bullish correction resides in the 139.50 price region. Even if that resistance target is not reached, however, the key technical event to watch for from a bearish trend perspective would be a breakdown and close below the noted bullish correction support trendline. In the event of this breakdown, a significant downside support target resides around the 132.00 price region.