GBPJPY – Having continued to maintain its broader downside bias, further declines are likely to occur despite its current price hesitation. In such a case, support lies at the 119.57 level with a cut through there allowing for more declines towards the 118. 78 level, its Friday low. The cross requires a decisive break and hold below here to resume its weakness towards the 117.35 level where a penetration will pave the way for more declines towards the 116.78 level, its Sept 2011 low. Its daily RSI is bearish and pointing lower suggesting further weakness. On the upside, a return above the 121.02 level must occur to trigger a convincing recovery where a violation will call for a move higher towards the 122.47 level and then the 124.96 level. All in all, the cross remains biased to the downside medium term.
