GBP/JPY Testing Major Zones

3 Sep 2017

GBP/JPY moved a lot like USD/JPY last week and I expect somewhat of a similar movement between them again this coming week, we know that they have a positive correlation. We had a nice push up off of a major support area and are now approaching a major resistance zone at the 143.250 area the current momentum in the market should take us there. If we get to this zone we can then asses price action and wait for a signal to determine which way price could break towards. Now I can expect to have a down bias based on the correlation with UJ which has a down bias, its important to have a bias but be flexible enough to trade both ways. If this supply zone holds true and price rejects we will start moving to the downside and a good confirmation for this happening would be the break and retest of the ascending trendlines which in turn would be creating a new sequence of lower lows and lower highs. If price continues its momentum push up the next target would be the 144 area.