GBPJPY defending major uptrend line

The GBPJPY cross rallied on Monday and Tuesday as sentiment improved and it was trading somewhat higher on Wednesday, hovering at around 133.50 in the morning.

The mentioned bullish trend line is near 132.60 and it was defended on Monday. As long as the price remains above this trend line, the medium-term outlook still seems bullish. 

However, if this level is taken out, the short-term trend could switch to bearish, targeting Monday's lows of 132.00. Another support level might be at the psychological level of 130.00.

Alternatively, if the cross continues rallying, we can see a retest of Tuesday's highs of 134.00. Breaking above this resistance might open space for a larger leg higher, targeting 136.00 or potentially the 200-day moving average, which is near 137.60.

Volatility in the FX market is low compared to other assets, but if we see another steep decline in stocks, JPY crosses could be hit as well.
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