JPY on the rise
The Japanese yen has been weakening for months against the British pound until yesterday.
The GBPJPY pair rose to a forteen months old resistance level and printed a piercing pattern (the body of the last candle covers more than half of the previous candle´s body) on the daily chart (A). In the same time the Relative Strength Indicator is in an overbought territory above the 80 line. If bearish momentum persisted, the course could decline to the closest support level at 144.90 – 144.20 (B). The downward spike marked with a yellow line is converging with the 50 moving average, which could also test the strength of the decline.
Further support would be provided by the zone at 142.30 – 141.90 (C). If the bulls did not give up and pushed the price above point A, they would have to fight two resistance levels within short distance.