On February 5th, I wrote about a potential GBPJPY buying opportunity.
The pair was breaking free from a multi-year level, and the uptrend was gaining momentum.
At the time, GBPJPY was trading at 144.73.
Fast forward to today, and the market is 580 pips higher.
You can also see where the market has respected the key horizontal levels on my chart relatively well over the last few weeks.
That’s especially true for the 148.00 to 150.00 range.
Notice how GBPJPY was rejected at 150.00 late last month before retracing and finding a bid at 148.00 support.
That brings me to today’s pending setup.
If the GBPJPY manages to close Thursday’s candle above 150.00, we could see the pair trend higher to 152.80.
That’s the next key resistance level I have marked based on the price action between late 2017 and early 2018.
However, keep in mind that it’s going to take a daily close above 150.00 first.
That means waiting until the New York 5 pm EST close.
If GBPJPY closes above 150.00 today, I think there’s a decent chance we see a retest of the level as new support before the next move up.
Alternatively, a daily close back below 150.00 would delay the break higher.