GBP-JPY: More Strength Likely

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 ( fxtechstrategy.com) -- The pound-yen cross currency pair reversed its previous week's gains to close higher this past week.

The risk is now for GBP-JPY to strengthen further in the coming week.

In such a case, the cross currency pair will target 135.09. A violation of that level would turn attention to 136.97 and then 139.99, the pair's April 2011 high.

GBP-JPY's weekly relative strength index is bullish and pointing higher, suggesting further strength.

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On the downside, support lies at 130.08, the March 2 high, where a breather may occur and turn the cross back up.

However, if the GBP-JPY breaks through that level, further weakness should follow toward 126.53.

Further down, support lies at 125.45, followed by 124.50. All in all, the pound-yen cross currency pair remains biased to the upside, having reversed its recent corrective weakness.

-- 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.

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