The cross rallied strongly on Tuesday building on its recovery and opening the door for a move further higher. With continued bullish offensive seen, the risk is for GBPJPY to head higher towards the 122.75 level, its Dec 22'2011 low. A cut through there will convince the market of further corrective gains towards the 123.14 level, its Nov 15'2011 high with loss of there aiming at the 127.30/21 levels. A breather is expected to occur here. Its daily RSI is bullish and pointing higher suggesting further strength. On the downside, the risk to this analysis will be a break and hold below the 120.18 level, its Jan 03'2012 high. However, the bigger support lies at the 116.78 level, its Sept 22'2011 low. Further down, support stands at the 115.00 level, its psycho level and then the 114.00 level. All in all, the cross remains biased to the upside nearer term on correction.
Join the Discussion