By Mohammed Isah of fxtechstrategy.com

NEW YORK (

TheStreet

) -- After an intraday reversal of its earlier losses on Friday, the pound-yen currency pair (GBP-JPY) is likely to see further gains in coming sessions.

The cross currency pair is currently hitting its declining channel top at 133.29. A decisive break and hold above that level will set the stage for further recovery toward 135.04 and then 137.76.

The pound-yen's weekly relative strength index (RSI) is bullish and pointing higher, supporting this view.

Alternatively, the risk to this analysis will be a failure to break through 133.29. This would set up the pair for a decline, possibly toward 129.21.

Further down, support is located at 127.95, the pair's Oct. 29 low, and 126.43, its Oct. 25 low.

Below there, the pair will resume its medium-term downtrend toward the 120.00 level and then its big support level at 118.80, its January 2009 low.

The pound-yen cross currency pair is biased to the upside in the near term, although it continues to preserve its broader medium- to long-term downtrend.

--Written by Mohammed Isah.

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Mohammed Isah is a technical strategist and head of research at FXTechstrategy.com, a technical-research Web site. He has been trading and analyzing the foreign exchange market for the past seven years. He formerly traded stocks before crossing over to the forex market, where he worked for FXInstructor LLC as a technical analyst and head of research before joining FXTechstrategy.com. He has written extensively on the forex market and technical analysis and his articles have been featured in The Technical Analyst Magazine, The Forex Journal Magazine, The International Business Times and FXstreet.com. At FXTechstrategy.com, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He also produces

The Professional Suite

for his subscribers. He provides full coverage of the forex market with specific focus on G10 currencies as well as the commodities markets, with focus on five key commodities.