The recovery in risk appetite combined with positive surprises from UK data have driven a Sterling/Yen recovery, to a point at which the market is testing a confluence of key resistance. The combination of a seven week downtrend and the underside of the old 15 month uptrend channel are being challenged and the rally looks to have strong momentum behind it. The move has already pushed above resistance at 147.00 which was an old key floor of the past three months. Although this is a source of overhead supply it does not seem to be hindering the bulls. Momentum indicators are ticking strongly higher in recovery. Each of the past six sessions have posted higher lows, with the breakout above 147.00 now a basis of support initially and with the strength of the bull candles, corrections are a chance to buy. A close above yesterday’s high at 148.00 would now break the trendlines and re-open the May reaction high at 150.00 as the next basis of resistance. Key support is now 145.80.