TheGeppy ($GBPJPY) is a monster, it has big moves and is quite volatile; we love it and right now this pair is at a very important level. Let´s take it pre-Brexit.
After the Brexit vote, this pair fell more than 2500 pips the made a high at 138.75 which is the level we are trading at. But we are trading in no man´s land.
After that big 1000 pip move to the upside, the GBP/JPY has been trading inside of a wedge which could mean that we are getting ready for a continuation of this move to the upside but the heavy tests on the 138.75 might signal otherwise. Even though bulls have kept this level from breaking, every time we think a rally might ignite sellers push the price down and test the bull/bear line again…. and again.
Should this support zone break w might find buyers at which is the next logical structure zone for bulls to be positioned; but we see it as fragile and if this scenario, in fact, develops we could see price on the guppy drop and be supported by bulls at the 133.60
