GBPJPY – The risk of further upside offensive continues to be seen as the cross closed higher the past week and looks to recapture its minor resistance at the 123.15 level. A violation of there will call for a run at the 124.06 level, its Nov 14’2011 high followed by its Nov 08’2011 high at 125.60. Further out, resistance lies at the 127.30/21 levels. A breather is expected to occur here and turn the cross back down. Its daily RSI is bullish and pointing higher suggesting further upside. On the downside, the risk to this analysis will be a break and hold below the 122.02 level, its Jan 25’2012 high. Further down, its Jan 30’2012 low at 119.57 will come in as the next downside support and subsequently the 117.26 level and next the 116.78 level, its Sept 22’2011 low. All in all, the cross remains biased to the upside on further corrective recovery nearer term.
