The GBP/JPY has reached a key resistance area

After the Non-Farms Payroll report out of the US, the Dollar has strengthen and the Yen has weaken versus its main counterparts due to the rise in risk appetite. That is why we saw the GBP/JPY rising rapidly. After the pair broke the 180.00 to the upside, along with the 200 period exponential moving average on the 4 hour chart, it reached the zone between the 181.50 level and the 182.00 level. This 50 pip area could become an important resistance for the pair and we could see a bounce to the downside. The last 4 hour candlestick has closed with a “spinning top” formation, which indicates a possible exhaustion of the bullish rally. If the price comes back down to the 181.00 level, that area could become support again.