GBPJPY – With GBPJPY maintaining its long term downtrend and weakening, there is risk of further declines towards the 116.78 level, its Sept 22’2011 low. The cross has been weakening since tumbling off its Oct’2011 level at 127.30. Further down, support lies at the 115.00 level, its psycho level and then the 114.00 level. Its daily RSI is bearish and pointing lower suggesting further declines. Alternatively, to put on hold its present downside threats, the cross will have to break and close above the 122.75 level, its Dec 22’2011 low. A convincing violation of here is required to create scope for further upside gains towards the 123.14 level, its Nov 15’2011 high with a loss of there aiming at the 127.30/21 levels. A breather is expected to occur here but if it breaks, further strength will shape up toward the 128.85 level, its Aug 08’2011 high. All in all, the cross remains biased to the downside in the long term as it targets the 116.78 level.
