Pound / Yen Trading at Pennant Resistance, Forming Doji (Chart)

Sterling has been oscillating in an upward manner against the Japanese Yen since late-January. Price action has found distinguishable support on multiple occasions since then. Resistance has only been clearly defined since early-April, but yet appears to be holding firm.

Currently we see GBPJPY trading at such a ceiling while forming a “doji” candle. A doji is generally seen as a reversal of the previous pattern. As one can see, preceding the current candle were three bullish candles with fading momentum. We now look towards Support 1 (green line) for a base. If the pair happens to crack through this level, then Support 2 may be a secondary target. Price action has bounced from this horizontal level on at least five occasions.