GBPJPY – With GBPJPY reversing its Wednesday losses and triggering a resumption of its corrective recovery initiated from the 116.78 level, risk of further strength is now building up. In such a case, its Sept 15’2011 high at 122.26 will come in as the next upside target with a violation of there allowing for further strength towards its Aug 10’2011 low at 123.27. A reversal of roles as resistance should occur here and possibly push the cross back down in the direction of its long term downtrend. Its daily RSI is bullish and pointing higher supporting its present recovery price activities. Alternatively, the risk to its current upside offensive will be a return below its 2011 low at 116.78. This will resume its broader long term downtrend towards the 115.00 and 114.00 levels, all representing its psycho levels. All in all, while GBPJPY may be recovering higher, it is doing so within its established long term downtrend.
