The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (
) - With GBP-JPY climbing higher, though slowly, following a halt in its declines at 119.94 on Oct. 18, a risk of a return to its Oct. 17 high is now building. A firm break and hold above that level will resume its corrective recovery towards the Aug. 10 low of 123.27, where a violation will set the stage for further strength toward the Sept. 6 high of 125.05.
Further out, resistance comes in at the Aug. 22 high of 127.31. Its daily RSI is bullish and pointing higher supporting this view.
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Alternatively, the risk to this analysis will be a return to the 119.94 level. A move below here would pave the way for further weakness toward 116.78. On further declines, GBP-JPY will aim at the 115.00 and 114.00 levels, representing its psychological marks.
All in all, though the cross continues to maintain its long-term downtrend, it presently faces corrective recovery risk.
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
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.