The Geppy (GBP/JPY) 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 we think a rally might ignite sellers push 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 geppy drop and be supported by bulls at the 133.60
On the other hand we could see this pair break with the wedge and continue its rally to the 147.00 level
