GBP-JPY: On a Slippery Slope

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) -- GBP-JPY: With GBP-JPY selling off and following through lower on the back of its Friday losses, the risk is for it to weaken further. It looks as if it is heading toward its key support located at the 126.53 level.

Further down, support lies at the 125.45 level, followed by the 124.50 level and then the 122.02 level, its January 25 high. Its daily RSI is bearish and pointing lower, suggesting further declines.

Alternatively, the cross will have to break and hold above the 133.46 level to put on hold its present downside and trigger further gains. A cut through there will call for a run at the 135.09 level.

Further upside above here will call for a run at the 136.97 level and subsequently its April 2011 high at 139.99. All in all, the cross remains biased to the downside as it looks to weaken further.

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.