DAILY FORECAST FOR GBPJPY 14th January 2010

Bias:     I look for follow-through to 149.99-150.35

Daily Bullish:

Gains resumed more directly than anticipated and this morning's break above 149.12 certainly should mean we see follow-through above 149.55 and into the 149.99-150.35 resistance area. I feel that should be enough on the day and from there expect a correction lower. Thus, any stronger bullish stance will require a break above 150.35-70. Only if seen would it maintain the bullish momentum for 151.17 and 151.77.

MT Bullish:

14th January:      This is looking stronger already but we should see a peak at the 149.99-150.35 area and we'll have to see how far this dips. However, it does look more bullish and I wouldn't be surprised to see a move as far as 153.22. However, in between could be consolidation.

Daily Bearish: 

Having seen the break above 149.12 I'd only look for losses to develop if we see a reversal that breaks below the 148.53-61 area. If seen it would risk reversal through 148.13 and 147.65 and towards the 147.06 area in a sideways consolidation… Thus take care at this support if seen. More likely I feel we'll get a selling opportunity around the 149.99-150.35 resistance area. Thus watch for a bearish trade set up there.

MT Bearish:

 14th January:   Only below 146.65-00 would send price down to the 145.98 low now… and if this is seen then potentially 144.97 also.

For access to my daily support & resistance levels please see the Daily Forecast page of my web site For a full description of how to use the analysis please see the Analysis page of my website. The prior day's set ups for potential trading levels highlighted in the report are available on the Daily Forecast page of my web site along with a new report showing the prior day’s support & resistance levels.