Yesterday (08/25/11) we heard rumors of Germany losing its AAA status, which sent the German 30 plunging. German economic releases have been far from spectacular for this month and we finally had drop in the GBP/USD.
Japanese Prime Minister Naoto Kan has announced that he is resigning and USD/JPY now sits in the 76.00 area again.
Take these two these two major events with a side of QE3 and we have GBP/JPY in freefall. If taking a position in this pair, we may see resistance in the mid 123 area. Place stops according to proper risk reward ratio as we have Jackson Hole today.