Saturday, 05th of Nov, 2011
GBPJPY: Sees Bullish Momentum, Upside Risk Set For Key Resistance
GBPJPY – The cross ended the week higher following a strong rally through its key resistance at the 122.61 level, its Oct 17’2011 high and setting the stage for further upside gains. GBPJPY has been under bull pressure since starting its corrective recovery from the 116.78 level, its Oct 22’2011 high and with that recovery remaining intact, further gains are likely towards its Oct 31’2011 high/daily 200 ema at 127.30/21. This will resume its short term uptrend towards the 128.85 level, its Aug 08’2011 high and subsequently, the 130.78 level, its Aug 04’2011 high. Its weekly RSI is bullish and pointing higher suggesting further strength. Alternatively, on any pullbacks, support resides at the 122.61 level, its Oct 17’2011 high where a reversal of roles is expected to occur and push the cross back up. A break below here if seen will reverse its present bullish offensive and then create scope further declines towards the 125.05 level, its Sept 06’2011 high. Further down, support comes in at the 119.94 level, its Oct 18’2011 with a cut through there allowing for further downside towards the 116.78 level. All in all, the cross continues to maintain its short term recovery theme started from the 116.78 level.
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