The pair is on a retrace after a massive fallout earlier this month.
JPY continued its safe-haven status on the backdrop of the equity meltdown. JPY strength weakened the GBPJPY cross to the 124.00 handle from the 141.00 high.
The current bounce is showing potential for a move towards the 137.00 handle. However, we are looking for a short-term perspective.
The daily chart above shows that price has broken back above the 131.00 handle. This has been a region of high activity and could act as a likely support zone on potential dips.
The top of the potential current channel comes at the 137.00 handle (black trendline). In hindsight, the potentially bigger range-play on the pair is the 131.00-137.00 region.
The red line is the current resistance patch to around the 135.00 handle and a break with a close higher favors a run towards 137.00. Alternatively, a failure could push price lower to the base of the channel. The current channel play is within the blue trendlines.
The 4-hour chart shows the current price action. The blue trendlines form the current channel in play. The resistance is in line with the daily 135.00 handle, but is inclining gradually.
The 4-hour chart also points to an earlier support (lower blue trendline) as compared to the daily. If this support fails to hold, price can depress towards the red line which is a horizontal support structure from current bottoms.
This support structure, if it comes into play, carries the potential for swing play with price bouncing and heading towards the 137.00 main target.