GBP/JPY Testing the March Trendline Resistance

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GBP/JPY Testing the March Trendline Resistance

The GBP/JPY has been declining in March. Let’s catch up on its latest price action.

The GBP/JPY is starting the week with a rally but is stalling just under 183 as we get into the US session. Here, there is a falling trendline resistance and the 100-hour SMA. If price can hold below 183, and the 1H RSI can hold below 60, we still have downside risk back towards the 181-181.25 lows. Below that the 180.25 level would be the short-term target, where we see another support.resistance area and the 50% retracement of the February rally.

Above 183, there is a common resistance around 184-184.20. IF price stalls and retreats from here, GBP/JPY could still be forming a rounded top. Above this area, the pair is more likely to be in bullish continuation, than further consolidation. The 185 high would be in sight, and the the 187.50-188.00 highs, before opening up the 189.71, 2014-high.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.