GBP/JPY : Powerful trend reversal due to expectations on the elections in Japan
--- New analysis ---
Elections in Japan are in December 16th and are giving the right political party as winner. This party is for a new monetary easing to fight the deflation in the country. This ledto a powerful trend reversal on the pair GBP/JPY who retraced the whole of its bearish movement of last week, shaping a V-Bottom pattern (continuation pattern).
The return above 127.50 gave us the buy signal. The price is currently moving above the support at 127.75 and got out of its short term bearish channel (blue lines in h1). We advise to trade only long positions as far as 127.30 is support. The breakout of 128.69 will give a new buy signal and should allow the price to reach for the third time the major resistance at 129.50.
In case of return below 127.30, we will be neutral between this level and 127.
Analysis published by Bruno, the 11/15/2012 at 9h15 GMT+2
Chart of the pair GBP/JPY - Timeframe 4H
Chart of the pair GBP/JPY - Timeframe 1H
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