Quote:
Originally Posted by 4xStar
Seeing what happened yesterday, it could not make it past 208.05, I think you may be right and the bears have her for now. This trip back down was inevitable IMO, question is now, how far down? On a daily or weekly, 199 looks likely, maybe lower?
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I'm going to be watching the american stock indexes. I think their recent run up is finally stalling, and will resume the longer-term downtrend shortly. The poor US economy, and tightening credit are not problems that are going to just go away for GBP/JPY. I believe most investors just want to get back into that high yield pair, and are ignoring current signals that things aren't doing so hot for US equities. If the indexes can break below their lows from March, I think GBP/JPY could make new lows too (<194). Even moreso if BoE cuts rates, as is the current trend for them.