The cross faces further downside weakness after it followed through lower on its corrective weakness the past week. W expect that weakness to build up towards the 130.92 level, its Feb 04'2011 low as we enter a new week with a violation of that level allowing for further declines towards the 129.81 level. We think the bulls should come in at that level and turn the cross higher but if that level snaps, look for the cross to weaken further towards the 128.28 level, its Jan 10'2011 low. Its weekly RSI is bearish and pointing lower supporting this view. Alternatively, in order for GBPJPY to reverse its present bearishness, it must break and hold above the 135.42 level, its Feb 15'2011 high. This will pave the way for more strength towards its Aug 03'2010 high at 137.75 and possibly higher.

GBPJPY