The Trend of the Day - GBP/JPY
Since the late November lows of 139.27, GBP/JPY has staged an impressive 8% ralley to close the year at 150.44. However, the New Year of 2010 has been less than favorable to the GBP/JPY, a popular currency pair known for its large and quick price swings. Currently, GBP/JPY is hovering near its daily support line found in the 14700-147.60 support area. Look to enter on a bounce from this daily trend line with a stop around 145.97. Look for a 1:2 risk to reward which would be in the 150.00-15100 area. This would mean a limit equal to double the stop amount in pips.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.