GBP/JPY Fibo ResistanceGBP/JPY has been on a run with more than 1,000 pips gained on the pair from the April 9th low around the 185.00 handle. There's been a few different clean setups, as well, such as the ascending triangle when the 190.00 level was holding as resistance, and then support.
The BoJ rate decision helped to prod JPY weakness and then there's been widespread continuation of risk-on so far to start this week. There's also some important context for the bullish continuation theme given this week's early rally...
The long-term gap from back in 2008 continues to carry weight and we saw that last week as the bottom of that gap at 193.61 held as resistance. The top of that gap sits at 198.08 and this was resistance when it was last in-play on January 7th.
At this point there's also Fibonacci resistance at 195.66 coming in to hold the highs, and this sets the stage for a higher-low at either 195.00 or 193.61. A show of support there opens the door for bullish continuation, and the top of that gap would be an ideal area for resistance to show at or around 198.08. Also of interest is a shorter-term Fibonacci level at 197.41 which is confluent with the psychological level of 197.50. - js
