By | May 23 2010 2:45 AM

GBP/JPY Weekly Outlook

GBP/JPY dropped to as low as 126.73 last week before turning sideway. The break of 130.00 confirmed that fall fro 145.94 has resumed. Hence, while some sideway trading might be seen this week initially, we'd expect upside to be limited by 132.78 resistance and bring fall resumption. Below 126.73 will target 118.18 low next. Nevertheless, bring of 132.78 will indicate that a short term bottom is formed, possibly with bullish convergence condition in 4 hours MACD. In such case, stronger rebound should be seen, possibly towards 140.55 resistance.