The GBPJPY hasn’t done much since the pound’s explosive October rally.
In fact, the risk-sensitive pair has only managed a 250 pip horizontal range since October 16.
This consolidation began following an October rally that took the GBPJPY higher by more than 1,000 pips in just six trading days.
It was an impressive rally, to say the least.
And although the intermediate trend here is still pointed lower, the pair has been carving a short-term uptrend since August.
This leads me to believe that this latest consolidation via the 250 pip range could trigger another leg higher.
How much higher?
One resistance level I would keep a close eye on is 143.80.
Notice how this area served as support for the pair in March and April.
Above that, we have a less apparent key resistance level at 147.00.
This was the location of several highs during the first half of September.
Just keep in mind that GBPJPY buyers need to secure a daily close above the recent range top at 141.50 to confirm the bullish breakout.
Remember that I use New York close charts.
These charts use a 5 pm EST daily open and close and are essential for trading price action the way I do.
The 141.50 area is unique in that it’s also the 50% retracement of the two-year range between 2018 and 2019.
Alternatively, a daily close below the 139.00 area would likely negate the bullish scenario I just described.
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