GBPJPY – With GBPJPY following through higher and triggering a corrective recovery the past week, scope for further strength is now seen towards its nearby resistance at the 123.27 level, its Aug 10′ 2011 low. This is coming on the back of its previous week rejection candle formation. A decisive break and close above the 123.27 level will extend its corrective recovery possibly towards the 125.05 level, its Sept 06’2011 high. Further out, resistance comes in at the 127.31 level, its Aug 22’2011 high. Its weekly RSI is bullish and pointing higher supporting this view. Alternatively, the risk to this analysis will be a return to the 116.78 level where a decisive violation will call for a run at the 115.00 and 114.00 levels, all representing its psycho levels. All in all, though the cross continues to maintain its long term downtrend, it now faces corrective recovery risk of its recent declines.
