GBPJPY – After a two-day of weakness, GBPJPY may have put in a bottom and turned higher with the possibility of further strength seen. If such a follow through occurs, we see the risk of a return above the 127.30/21 levels. This will resume its short term uptrend towards the 128.85 level, its Aug 08’2011 high and subsequently, the 130.78 level, its Aug 04’2011 high. Its daily RSI is bullish and pointing higher suggesting further strength. Alternatively, supports reside at the 123.86 level where a break will pave the way for further declines towards the 122.61 level where a reversal of roles is expected to occur and push the cross back up. Below here if seen will reverse its present bullish offensive and then open the door further declines towards the 125.05 level, its Sept 06’2011 high. Further down, support comes in at the 119.94 level, its Oct 18’2011 with a cut through there allowing for further downside towards the 116.78 level. All in all, the cross continues to maintain its short term recovery theme though facing price hesitation.
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