DAILY FORECAST FOR GBPJPY 10th February 2009

Bias: Mixed - waiting for breaks though until 134.50 breaks the upside does still remain intact…

Daily Bullish:
We saw a retest of the 133.32 high but then a drop which reached 134.50 this morning. It doesn't look healthy but then it hasn't broken below the 133.62 swing low. As such the lows are still moving higher and thus the uptrend is still intact. For this to follow-through we're going to need a break back above 136.20 which should encourage the rally back to the 137.33 high and if this breaks then look for follow-through to 138.75 at least. If this becomes more aggressive then the next target is at 140.48 & 142.27.

MT Bullish:
6th February: We have smashed above yesterday's resistances to reach 135.61. While 132.00 supports there is a resistance point at 136.20 but if this becomes aggressive we could see higher to 140.36.

Daily Bearish:
The sharp losses this morning to warn of a potential reversal lower but these will need confirmation by loss of the 133.62 low and preferably 132.90. If seen then the downside should be quite aggressive and reach all the way to 129.90 at least. Take care here as this could cause a pullback. Below 129.75 would imply 128.30 and below...

MT Bearish:
9th February: We can now raise the reversal level to 132.46 below which the downside becomes stronger for 131.31 and 130.70...