GBPJPY – With two back to back downside price rejection candle patterns, the cross could be preparing to recapture the 130.08 level. In such a case, the 130.78 level, its July 2011 high will be targeted with a cut through there clearing the way for a run at 132.22 level. Its weekly RSI is bullish and pointing higher suggesting further strength. On the downside, on any declines, the 126.53/66 levels will come in as the first supports where breather is expected to occur and possibly turn it higher again. However, if that level snaps, the cross will face further downside pressure towards the 125.45 level. Other supports are located at the 124.50 level and the 122.02 level, its Jan 25’2012 high. Further down, its Jan 30’2012 low at 119.57 comes in as the next support. All in all, the cross remains biased to the upside on bull trend resumption.
