Updated the:
GBP/JPY : A pursuit of the bullish rally is expected

Sentiment :

In the middle of August, the pair GBP/JPY got out of its medium term bearish channel and the breakout of the major resistance at 123.77 gave us a buy signal. Then, a strong bullish rally occured towards 125. Since several days, the price is moving into a tight range between 124.50 and 125. An accumulation zone is shaped which could lead to a new bullish wave.

We expect a pursuit of the bullish rally during the next days towards the resistance at 125.80 and 126 in extension. This scenario is reinforced by a bullish slant in h4 (black line).

We stay bullish as far as 124.50 is support. The breakout of 125 will give a new buy signal.

In case of return below 124.50, we will be neutral on the pair, waiting for new signals. The breakout of 124.50 should lead to a strong correction for a pullback on the major support at 123.77.

Analysis published by Bruno, the 08/21/2012 at 10h15 GMT+2

Updated the 08/28 - Last week, the pair GBP/JPY got over the resistance at 125 but the resistance at 125.50 lead to a correction of the price towards the major support at 123.77. We are neutral on the pair between this level and 124.60. In h4, a triangle appears (purple lines).

Two scenarios are possible:
- Breakout of the major support at 123.77 : A sell signal will be given and a bearish wave towards 123 should be then expected
- Return above 124.60 : A buy signal will be given. We could then expect a new test of the resistance at 125.50.

Complete sheet of the pair GBP/JPY - Previous GBP/JPY Analysis
Chart of the pair GBP/JPY - Timeframe 4H
Chart of the pair GBP/JPY - Timeframe 1H