GBPJPY appears to have no intention of stopping after coming into a key resistance area at 181.60. I mentioned this area last Thursday noting that it represents the intersection of trend line resistance from the December 2014 high and the key horizontal level at 181.60.
The bulls just made a strong statement with a 4 hour close above the area. This leaves us waiting for bullish price action on a retest of 181.60 as new support. Of course the more risk-averse traders can wait for a daily close above the level before considering an entry.
Resistance levels to keep an eye on include 184.60 and of course the multi-year high at 189.70. The 184.60 level is defined by the February and March highs as well as a weekend gap that occurred immediately following the first trading day of the year.
Summary: Watch for bullish price action on a retest of the 181.60 level as new support. Key resistance comes in at 184.60 and 189.70.
