Price action on GBP/JPY (a daily chart of which is shown) as of Wednesday (11/03/2010) has risen to approach a key resistance confluence. This confluence consists of the important 132.00 support/resistance level and the long-term downtrend resistance line (part of a parallel downtrend channel) extending from the August 2009 high. Currently, price action is still contained within this very important channel.

In the event of a breakout above this resistance confluence, however, a key upside resistance target resides around the 135.00 price region.

If the current channel continues to be respected, as it has been for the last 15 months, downside support continues to reside around the 126.40 price region.

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