The cross continues to press higher following its Thursday strong rally. We look for GBPJPY to advance further towards its Nov 08'2011 high at 125.60. Further out, resistance stands at the 127.30/21 levels where a breather could occur and turn the cross back down. Its daily RSI is bullish and pointing higher suggesting further upside. On the downside, the risk to this analysis will be a break and hold below its 200 daily ema located at 123.94. Below here if it materializes will create scope for more declines towards the 122.02 level, its Jan 25'2012 high. Further down, its Jan 30'2012 low at 119.57 will come in as the next downside support and subsequently the 117.26 level and next the 116.78 level, its Sept 22'2011 low. All in all, the cross remains biased to the upside on further corrective recovery nearer term.
Join the Discussion