GBP/JPY — Evidence Mounts Over Upside Risks

One market that I find particularly interesting to trade long is the Sterling against the Japanese Yen. After breaking through resistance at 140.50/60, bulls have exerted unambiguous control of the price action in the last 48h by printing back-to-back bullish rejection bars (also known as pin bars). The continuation of the bullish momentum, therefore, appears to be the path of least resistance, judging by the alignment of price action with the steep angle of the bullish 5-DMA or the fact that even if equities are starting to roll over, the 5-DMA on the S&P 500 still points upwards. There is, therefore, a case to be made for the Sterling to test the next key area of resistance at 143.40/50.