The GBP/JPY aka “the Dragon” has a strong correlation with equities. Last night Japan, HK and Australian markets went up due to commodities prices up, abenomics in Japan, and follow through risk-on due to US Equities performing strongly overnight. Nikkei was probably the best performer as it has been up 1200pts in 3 days.
The dragon is making an advance towards 138.00-20 zone where it should face resistance. POC consists of H5 weekly PP, 61.8, Historical sellers (blue quadrant) , EMA89 and it should possibly bring some fresh selling on the pair towards 134.60. 139.20 is the last line of defense before we possibly see another advancement towards 144.05. Traders should know that if the pair breaks 144.05 it should set up a new mid term goal possibly towards 160.10 retest.
GBPJPY 4 Hour Chart