The FX Specialist view – From a rally high in 2009 the GBP/JPY cross has continued to experience downward pressure through 2010. However, a 76.4% pullback level has, on three occasions now, been eroded but with bears then losing interest…
- WEEKLY CHART
See how the downmove in 2010 has continued to fail to hold below the 76.4% level when tested/eroded.
We here show the 23.6% recovery level of the 2009/2010 decline, around 135.00. A break through this would provide the first bull sign.
Now see Daily chart… - DAILY CHART:
Recent weakness failed to hold below the prior 126.73 May low, with that long term 76.4% level also having a residual supporting influence.
Focus has again turned on the bear channel tops near 133.00 currently, now tested. However, more key is the 135.00 area, where the 17-Sep high coincides with the 23.6% recovery level to provide dual resistance – a break above this would provide an initial bull signal here.
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