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GBP/JPY Daily Outlook

ByActionForex
Published 12/06/2011, 05:27 AM
Updated 03/09/2019, 08:30 AM
GBP/JPY
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Daily Pivots: (S1) 121.37; (P) 121.83; (R1) 122.22;

GBP/JPY continues to stay in tight range below 122.56 and intraday bias remains neutral. Another rise cannot be ruled out yet with 120.75 minor support intact. However, the choppy structure and weak momentum or rise from 119.37 suggests that ti's merely a correction. Hence, even in case of another rise, we'd expect upside to be limited by 50% retracement of 127.30 to 119.37 at 123.33 and bring fall resumption. Below 120.75 will flip bias back to the downside and should send GBP/JPY through 119.37 towards 116.83. Though, break of 123.33 fibo level will suggest rise from 119.37 is indeed the third leg of the consolidation pattern from 116.83 and would possibly target 127.30 and above before completion.

In the bigger picture, there is no sign of reversal in GBP/JPY as it's still staying well below the falling 55 weeks EMA (now at 128.13). The down trend from 2007 high of 251.09 is still expected to continue to 61.8% projection of 215.87 to 118.81 from 163.05 at 103.06, which is close to 100 psychological level. On the upside, break of 130.83 resistance is needed to be the first signal of medium term reversal. Otherwise, medium term outlook will remain bearish even in case of further rebound.

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