By Mohammed Isah of FXTechstrategy.com

GBP-JPY: The cross has backed off the 125.46 level, having followed through higher on its Monday corrective recovery in early trading today. Nevertheless, GBP-JPY continues to maintain its long-term bearishness despite its current recovery effort. However, on continued recovery, the cross should target its Nov. 30, 2010 low at 129.28. We expect that level to cap gains if tested and then turn the pair back down. Above there will target further strength toward the 130.76 level, its falling channel top.

Further out, support stands at the 133.04 level. Its daily RSI is bullish and pointing higher, supporting this view. Alternatively, a break and hold below the 125.46 level is needed to resume its long-term weakness toward the 122.00 level followed by the 120.00 level, representing its psycho levels.

On further declines, the 118.80 level, its 2009 low, will be targeted. All in all, the cross may be recovering higher. However, while the 129.28/130.76 levels cap upside gains, we look for the resumption of its broader weakness.
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.