Blake Morrow’s Chart of The Day – GBPJPY
The GBPJPY (A.K.A. the “guppy”) is breaking some horizontal resistance at the 166.42 level however should find some key resistance at the 127% extension of the July 27th high to August 2nd lows. This is at 168.34. Above that is the very long term 61.8% retracement at 168.71 level which is also near the highs from the 20th of April and the 9th of June. Considering that the BOJ is stepping up verbal rhetoric on the weak JPY, selling GBPJPY near those levels makes sense since it is good risk/reward for fresh shorts.