GBP/JPY: Safer Speculation on BOJ Intervention

The GBP/JPY daily chart below shows that the pair has found a floor at the 50% retracement of the mid-January rally and may be ready to start trading higher. Further bolstering the bullish picture on the daily chart, today’s price action has formed a Bullish Engulfing candle on the 4hr chart, showing that buyers have gained the upper hand and further rallies are likely.The pair is approaching anticipated resistance at the round 121.00 handle, though if rates can break above this level, a further continuation up to previous resistance near 1.2200 or 1.2250 will be favored.

Commentary from Brad Gareiss and Matt Weller, Technical Analysts, GFT