There’s a nice confluence of the 55 and 100 dma’s forming around 169.68/82 and while USD/JPY still stubbornly refuses to breakdown the tech is likely to hold up on a test.
GBP/JPY daily chart 11 04 2014
At the moment support is coming in along the Jan trendline and 100 dma. A long play against the 55 dma looks the favourable move but with one eye firmly on USD/JPY holding 101.20 and at worst case 100.75, though GBP/JPY longs might have to wear some pain while that happens, The threshold for that scenario would be around the 167.70/168.00 mark.
USD/JPY daily chart 11 04 2014
I also like both those USD/JPY levels for a long but with a tight stop on a break of 100.60 or 100.50.
It’s definitely a trade that’s going to need watching like a hawk rather than buy and forget and the first upside target I’d be looking to be cleaned out is the Dec resistance line around 173.00.
There’s a similar picture in EUR/JPY but I’m long euro’s in other trades so want to cast my net in a different direction.
