The GBP/JPY is at a resistance zone that may turn the pair, if not only temporarily...but the real zone to watch is another 370 +/- pips from the current price. The area around 139.60 is strong resistance that looking at a Weekly Chart we can see that price reversed from many times beginning in 2008 and most recently in Aril of 2011 when the pair touched 140.012 in the first week of April, only to fall over 2300 pips in the weeks that followed. This type of rapid movement has happened many times, with the 139.60 area appearing to be the catalyst. Not to ignore the immediate resistance level of 136.33 however, as this level has also provided both support and resistance to the pair, combined with the lower S/R area of 134.00, the pair has had only 1 instance of closing above this zone once since April 2010. If one considers the fundamentals of the Democrats winning the Japanese Elections over the weekend, and their desire to implement aggressive QE, this pair will potentially continue much higher. I believe we are due for a correction with the RSI entering Overbought on the Weekly chart, but the correction might not get far with 134.65 offering solid support now.
Happy Trading