GBP/JPY: Last Thursday’s violent pullback has brought the cross back to some familiar range lows in the 140.00 area and it will be interesting to see how the market responds from here. Key support by 139.00 has been broken and a sustained break will signal a fresh wave of declines, while inability to close below this level would suggest that the market has once again reached a base and could be poised for range resumption and some decent upside. Tuesday’s price action reinforces basing prospects, but it is still too early to tell.
[B]Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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