While GBPJPY may be on its second day of upside recovery, it must break and hold above the 122.66 level to create scope for further upside gains. In such a case, the 123.14 level, its Nov 15'2011 high will be targeted with a loss of there aiming at the 127.30/21 levels. Further out, resistance lies at the 128.85 level, its Aug 08'2011 high and subsequently, the 130.78 level, its Aug 04'2011 high. Its daily RSI is bullish and pointing higher supporting this view. On the downside, a return below the 120.27 level, its Dec 14'2011 low will call for further declines towards Nov 28'2011 low at 119.92 level. A violation of there will call for further declines towards the 119.35 level. Below here will open the door for a run at the 116.78 level and subsequently, the 115.00 level, its psycho level and then the 114.00 level.

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