Forex Trading: GBP/JPY

A move higher in the GBP/USD above resistance at 1.4350 may be tied to gains above key resistance in the GBP/JPY.

The GBP/JPY has been using the April 1995 low as key resistance over the last few days. The price comes in at 129.32. On Wedneday and Thursday the price moved above the level on stop loss hunting, but the moves were quickly reversed.

Today the high price comes in at 129.84. The current price is well below at the 128.63 level. However, as long as the price can remain above the 100 hour moving average, currently at 126.92, a test of the topside remains the favored direction. Watch this level.