The British pound is once more pushing towards its significant resistance level against the Japanese yen at 134.25. The pair has tested this price barrier twice before over the previous five months, failing to breach both times.
While the pound has been gaining ground against a number of its currency rivals, it has so far failed to breach this resistance line versus the yen.
Looking over the chart below, it appears the pound will once more fail to break through this resistance level as per the technical indicators seen on the chart (provided by ForexYard).
As we can see, the Stochastic (slow) is revealing a fresh bearish cross, signaling an impending downward correction. The recent bearish cross on the MACD supports this notion as well.
If this technical analysis bears weight on this week’s trading, then the GBP/JPY may indeed experience a significant down-turn as it fails once more to break through this price barrier at 134.25.
GBP/JPY – Daily Chart
Other relevant articles you may like
Greg Holden is the Chief Market Analyst at ForexYard. Greg uses his detailed knowledge of fundamental and technical analysis to provide some of the leading market forecasts in the forex world today. A guest lecturer at forex symposiums and Chief Editor of ForexYard's analysis center, Greg brings highly detailed and easy-to-use market analyses to his clientele. He has been published on ForexYard's Trading Blog and affiliate websites. Greg holds degrees in Political Science and Economics from Missouri State University, as well as a Masters degree in Middle Eastern History.
