GBP/JPY : Powerful trend reversal due to expectations on the elections in Japan
--- Follow up analysis ---
The pair GBP/JPY continues to benefit from the weakness of the Yen to pursuit its bullish rally. The price is currently testing the major resistance at 129.50 for the third time. This level matches with a former medium term bullish slant (purple line) who could also act as resistance. The last bullish movement has been led by a short term bullish slant (black lines).
The pair GBP/JPY has retraced the whole of its last bearish movement, shaping a V-Bottom parttern. A pullback on 128.69 stay possible but the pattern is pushing for a pursuit of the movement during the week.
We continue to advise long positions as far as 128.25 is support. The breakout of 129.50 will give an important new buy signal. A new bullish wave will be then expected towards 130.50 and 131 in extension.
In case of return below 128.25, we will be neutral between this level and 127.75.
Analysis published by Bruno, the 11/19/2012 at 9h00 GMT+2
Chart of the pair GBP/JPY - Timeframe 4H
Chart of the pair GBP/JPY - Timeframe 1H
|GBP/JPY Live Chart - Timeframe : 4h|
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