Trading University, Chicago Blog

GBPJPY, aka The Dragon, is holding below its current resistance lines following a modest short covering rally today which kicked off ahead of the London session.

To do any serious technical damage to the current down trend we would need to see a daily close above the Weekly Central Pivot at 153.38.  Should we see a surprise on the upside for tomorrow’s non-farm payroll figures then weekly R1 at 155.68 is not an unreasonable target, with the 50% retracement level of the current 1-month down-move just above that.

If the pattern in place above the market now proves to be a double-top it would give us a downside target of approx. 132.00

Jay Norris
www.trading-u.com
jnorris@brewerinvestmentgroup.com

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