GBPJPY: Having declined through the 139.23 level, its Nov 26'09 low and the 138.22 level, its Feb 04'10 low to resume its medium term downtrend initiated from 163.06(2009 high), GBPJPY is set to retest those levels on a corrective recovery journey after putting in a temporary bottom at the 132.00 level the past week. We expect the bears to defend that zone as it is also fortified with .382 Fib Ret (150.56-132.00 sell off) at 139.10. A break and hold above that zone though not envisaged at the current price levels will turn further upside risk towards its Feb 17'10/.618 Fib Ret at 143.44/60. Its daily stochasticsis bullish and pointing higher supporting this view. On the downside, weakness on its corrective recovery failure will target the 134.80 level where its Mar 04'10 high is located with a turn below there setting the stage for a run at its 2010 low at 132.00. Beyond that level will resume its medium term downtrend towards the 131.45 level, its Mar 08'09 low initially with a break paving the way for further weakness towards its Feb 16'09 low at 129.60 and then its Feb 12'09 low at 127.09. Overall, broader bias remains to the downside as long as the cross holds below the 139.23/138.22 levels or even the 143.44/60 levels though currently seen correcting.

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