GBPJPY weakens, but trades above the uptrend line

The GBPJPY cross was down marginally during the US session on Tuesday and was trading near 137, down 50 pips from intraday highs reached during the Asian session.

Stock markets are continuing higher again (no surprise there), which might support the JPY crosses as well, although it looks like today's weakness in the GBPJPY cross is coming from the weaker GBP and not from the stronger yen. 

The price is still trading above the uptrend line from September lows, which is currently near 136.30. As long as the cross trades beyond this line, the short-term outlook seems bullish. 

Bears will be heavily defending the key resistance of previous lows, which is in the 138 area, as shown on the chart with the blue rectangle. Jumping above this resistance would most likely switch the medium-term trend back to bullish. 

Alternatively, another support should be at around 135.50, where previous lows are located. If the cross drops below this zone, a retest of previous swing lows of 133 seems likely. 
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