British Pound Sterling - Japanese Yen (GBP/JPY)
Daily Chart of GBP/JPY:
British Pound- Yen (GBPJPY) Analysis:
(Please refer daily currency charts and not short-term charts e.g. hourly charts. All technical indicators for the weekly GBP/JPY outlook are based on the daily forex charts and in some cases 4-hourly charts. The trading strategies and forecast is based on the technical and fundamental outlook.)
British Pound - Yen (GBP/JPY) Forecast:
Previous Outlook of GBP/JPY:
" 2 Weeks Back: With support over 130.00, any break above 132.90 should target the mentioned resistance zone of 133.25/133.49."
GBP/JPY Outlook For This Week:
|Please check the fundamentals and relative strengths of recent economic releases and also technical analysis at following links as the base of this week's forecast of GBP/JPY. We recommend to check the economic strength meter on Fundamental Outlook page.|
|GBP/JPY Fundamental Outlook||GBP/JPY Technical Outlook|
British Pound-Japanese Yen (GBP/JPY) went as high as 137.86 and then went into a volatile sideways mode over the week's low of 135.45. The weekly closing was at 136.21.
The support over 135.45 indicates that the support of the psychological 135.00 is in play and the underlying bullish sentiments for the near-term remain in place. However, the wide gap between the highs and the opening prices of the last 3 trading days' red candles make us expect some further downward consolidation initially.
If resistance near 137.00 holds then on the downside any decisive break below 135.80 should take GBP/JPY towards a minor support near 134.45. This support is derived by previous price action as well as 22-day EMA.
Any break and sustained price action below 134.45 should find a support near 133.20. This level is the combined support of the 38.2% retracement of the upward move during November 12th and December 19th and the previous resistance which should act as support. Please check this GBP/USD chart alert. Any decisive break with any sustained price action below this support will neutralize the outlook for further immediate gains.
If the mentioned immediate supports hold and a break over the recent 137.86 takes place then we would expect further gains towards a strong resistance zone of 139.80/139.40. The psychological resistance of 140.00 ranges should start coming into the picture in this zone. Please note that 140.02 had proved to be a very strong resistance on April 8, 2011 and a decisive break of that is required for an indication of a possible reversal.
GBP/JPY Trading Strategies:
As mentioned above that though overall we are expecting further upward gains but there are possibilities for some consolidation. We would be looking forward to buying at the support levels mentioned but with tight stop-loss levels. Any short-selling position at current level would not have a stop-loss above 137.00.
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For short term Forex trades, please refer to daily technical analysis for British Pound/Japanese Yen at GBP/JPY Analysis.
|GBP/JPY Interest Rate Comparison|
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