GBPJPY – The cross ended the week strongly higher the past week following through on its recovery started from the 117.26 level. This development now leaves GBPJPY targeting further strength towards the 127.30 level, its Oct 2011 high where a break will extend additional strength towards the 130.78 level, its July 2011 high. Its weekly RSI is bullish and pointing higher suggesting further strength. On the downside, on any pullbacks, the 122.75 level, its Dec 22’2011 high will come in as the first support where a reversal of roles as support is expected to occur and possibly turn it higher. However, if that snaps, the cross will face further downside pressure towards 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 support and subsequently the 117.26 level, its Jan 13’2012 low. All in all, the cross remains biased to the upside on further upside offensive.
